Valuations and margin moderation likely to cap upsides for Colgate

The company's focus on driving premiumisation in oral care and building the personal care portfolio could drive long-term performance, says the brokerage

After gaining over 15 per cent in the first half of the week, the stock of oral care major Colgate-Palmolive (India) has shed about a third of those gains. While the company has been an outlier in the consumer space, given a robust September quarter performance, brokerages believe that upsides could be capped on the back of moderating volume, margins, and steep valuations. 

 

Its September quarter (Q2FY25) results were better than peers in the consumer space, helped by the high single-digit volume growth in the toothpaste segment and a double-digit revenue growth in the toothbrush segment. The gains were on