Colgate-Palmolive (India) Ltd
Colgate-Palmolive (India) Ltd
Fast Moving Consumer Goods F&OColgate-Palmolive India Ltd is engaged in manufacturing/ trading of toothpaste, tooth powder, toothbrush, mouthwash and personal care products.[1]
Colgate-Palmolive India is a high-quality defensive compounder with exceptional ROE of 83% and near-zero debt, but the stock trades at an expensive 41.6x PE and 34.8x PB with tepid sales growth of just 5% CAGR over 5 years. At current valuations, the risk-reward is not compelling enough for fresh entry despite the strong franchise.
Key Fundamentals
MidcapPersonal CareConsumer GoodsTechnical Indicators
Key Insights
Strengths
4- Company has reduced debt.
- Company is almost debt free.
- Company has a good return on equity (ROE) track record: 3 Years ROE 79.4%
- Company has been maintaining a healthy dividend payout of 105%
Weaknesses
2- Stock is trading at 33.7 times its book value
- The company has delivered a poor sales growth of 4.51% over past five years.
Growth Rate
AI Analysis — Bull vs Bear
Colgate-Palmolive India is a high-quality defensive compounder with exceptional ROE of 83% and near-zero debt, but the stock trades at an expensive 41.6x PE and 34.8x PB with tepid sales growth of just 5% CAGR over 5 years. At current valuations, the risk-reward is not compelling enough for fresh entry despite the strong franchise.
- Exceptional return on equity of 83% in the last year and 79% 3-year average, indicating highly efficient capital allocation
- Virtually debt-free balance sheet with reduced debt levels, providing significant financial resilience in economic downturns
- Consistent dividend payout ratio of 105%, translating to a 2.37% dividend yield — attractive for a consumer staple
- Dominant market share in oral care category in India with strong brand moat and distribution network across urban and rural markets
- Compounded profit growth of 8% over 10 years demonstrates steady earnings compounding despite a mature category
- 10-year stock CAGR of 9% shows long-term wealth creation track record for patient investors
- FMCG sector provides defensive characteristics with low cyclicality, suitable for portfolio stability during market volatility
- Stock trades at 34.8x book value — extremely expensive even by FMCG standards, leaving minimal margin of safety
- Poor sales growth of just 5% CAGR over 5 years and 0% TTM growth signals near-term revenue stagnation
- 1-year stock return of -17% indicates significant price correction and loss of market confidence
- PE ratio of 41.6x is demanding for a company delivering only 5% compounded profit growth over 5 years
- TTM profit growth is negative at -6%, showing earnings are actually declining in the most recent period
- Only 25% of 28 analysts rate it a Buy, while 35.71% recommend Sell — consensus is bearish with 10 out of 28 analysts on Sell
- 3-year stock CAGR of just 7% and 5-year CAGR of 3% suggest prolonged underperformance relative to broader market indices
- Limited growth levers in a mature oral care market where penetration is already high in India
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Q4 sales up 9% YoY Jun 17
Colgate-Palmolive (India) reported Q4FY26 sales of Rs 1,583 crore, a 9% YoY increase, signaling steady topline growth.
- Rs 24 interim dividend declared Jun 17
The board declared a second interim dividend of Rs 24 per share, reflecting strong cash generation and shareholder returns.
- Multiple investor meets scheduled Jun 10
Colgate-Palmolive (India) attended investor meetings hosted by Citibank (Jun 16), Bank of America (Jun 3), and J.P. Morgan (Jun 5) in 2026. No unpublished price sensitive information was shared.
TL;DR: Colgate-Palmolive (India) is delivering consistent topline growth with Q4FY26 sales rising 9% YoY to Rs 1,583 crore, supported by healthy dividend payouts. No material headwinds are visible in recent news flow. Active investor engagement suggests continued institutional interest. The trend appears stable with no near-term risks flagged.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,351 | 1,324 | 1,471 | 1,396 | 1,490 | 1,497 | 1,619 | 1,462 | 1,463 | 1,434 | 1,520 | 1,486 | 1,595 |
| Expenses | 899 | 906 | 989 | 927 | 958 | 988 | 1,122 | 1,007 | 964 | 981 | 1,054 | 1,044 | 1,086 |
| Operating Profit | 452 | 418 | 482 | 468 | 532 | 508 | 497 | 454 | 498 | 453 | 465 | 442 | 510 |
| OPM % | 33% | 32% | 33% | 34% | 36% | 34% | 31% | 31% | 34% | 32% | 31% | 30% | 32% |
| Other Income | 18 | -5 | 21 | 18 | 23 | 23 | 76 | 20 | 19 | 18 | 15 | 31 | 0 |
| Interest | 1 | 1 | 1 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Depreciation | 43 | 44 | 44 | 41 | 42 | 42 | 42 | 41 | 38 | 38 | 37 | 36 | 35 |
| PBT | 426 | 369 | 458 | 443 | 511 | 489 | 530 | 433 | 478 | 432 | 442 | 436 | 474 |
| Tax % | 26% | 26% | 26% | 26% | 26% | 26% | 26% | 25% | 26% | 26% | 26% | 26% | 25% |
| Net Profit | 316 | 274 | 340 | 330 | 380 | 364 | 395 | 323 | 355 | 321 | 328 | 324 | 353 |
| EPS in Rs | 11.63 | 10.06 | 12.5 | 12.14 | 13.96 | 13.38 | 14.52 | 11.87 | 13.05 | 11.79 | 12.04 | 11.91 | 12.99 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,982 | 3,868 | 3,982 | 4,188 | 4,462 | 4,525 | 4,841 | 5,100 | 5,226 | 5,680 | 6,040 | 6,035 |
| Expenses | 3,159 | 2,929 | 3,038 | 3,074 | 3,226 | 3,323 | 3,331 | 3,534 | 3,679 | 3,779 | 4,082 | 4,165 |
| Operating Profit | 823 | 940 | 944 | 1,114 | 1,236 | 1,202 | 1,510 | 1,566 | 1,547 | 1,901 | 1,958 | 1,870 |
| OPM % | 21% | 24% | 24% | 27% | 28% | 27% | 31% | 31% | 30% | 33% | 32% | 31% |
| Other Income | 32 | 7 | 41 | 26 | 68 | 49 | 30 | 26 | 42 | 57 | 139 | 64 |
| Interest | 0 | 0 | 0 | 0 | 2 | 10 | 7 | 6 | 5 | 5 | 4 | 4 |
| Depreciation | 75 | 111 | 133 | 157 | 159 | 198 | 182 | 177 | 175 | 172 | 163 | 146 |
| PBT | 780 | 835 | 851 | 983 | 1,143 | 1,043 | 1,350 | 1,409 | 1,410 | 1,781 | 1,930 | 1,784 |
| Tax % | 28% | 30% | 32% | 32% | 32% | 22% | 23% | 23% | 26% | 26% | 26% | 26% |
| Net Profit | 559 | 581 | 577 | 673 | 776 | 816 | 1,035 | 1,078 | 1,047 | 1,324 | 1,437 | 1,325 |
| EPS in Rs | 20.55 | 21.37 | 21.23 | 24.76 | 28.52 | 30.02 | 38.07 | 39.65 | 38.5 | 48.67 | 52.83 | 48.73 |
| Div. Payout % | 58% | 47% | 47% | 97% | 81% | 93% | 100% | 101% | 101% | 119% | 97% | 99% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 14 | 27 | 27 | 27 | 27 | 27 | 27 | 27 | 27 | 27 | 27 | 27 |
| Reserves | 757 | 1,004 | 1,247 | 1,497 | 1,420 | 1,567 | 1,139 | 1,707 | 1,689 | 1,847 | 1,637 | 1,557 |
| Borrowings | 0 | 0 | 0 | 0 | 83 | 102 | 91 | 83 | 69 | 72 | 61 | 47 |
| Other Liabilities | 932 | 972 | 1,037 | 1,039 | 1,097 | 908 | 1,637 | 1,084 | 1,098 | 1,250 | 1,293 | 1,777 |
| Total Liabilities | 1,702 | 2,003 | 2,311 | 2,564 | 2,626 | 2,604 | 2,894 | 2,902 | 2,883 | 3,197 | 3,019 | 3,408 |
| Fixed Assets | 782 | 1,008 | 1,108 | 1,146 | 1,191 | 1,123 | 1,065 | 963 | 862 | 794 | 776 | 718 |
| CWIP | 141 | 78 | 167 | 159 | 199 | 190 | 145 | 122 | 114 | 110 | 38 | 27 |
| Investments | 37 | 31 | 31 | 31 | 31 | 19 | 19 | 0 | 0 | 0 | 0 | 0 |
| Other Assets | 742 | 885 | 1,005 | 1,228 | 1,206 | 1,272 | 1,666 | 1,817 | 1,907 | 2,292 | 2,204 | 2,663 |
| Total Assets | 1,702 | 2,003 | 2,311 | 2,564 | 2,626 | 2,604 | 2,894 | 2,902 | 2,883 | 3,197 | 3,019 | 3,408 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 638 | 689 | 688 | 694 | 983 | 930 | 784 | 1,626 | 1,176 | 1,199 | 1,394 | 1,806 |
| Investing | -272 | -237 | -342 | -207 | -96 | -19 | 71 | -108 | -8 | 79 | 56 | 374 |
| Financing | -385 | -391 | -341 | -380 | -815 | -891 | -956 | -1,091 | -1,087 | -1,195 | -1,671 | -1,422 |
| Net Cash Flow | -18 | 61 | 5 | 107 | 73 | 20 | -101 | 427 | 82 | 83 | -221 | 758 |
| Free Cash Flow | 339 | 417 | 367 | 485 | 879 | 869 | 727 | 1,576 | 1,107 | 1,123 | 1,323 | 1,730 |
| CFO/OP | 103 | 100 | 105 | 93 | 113 | 104 | 76 | 127 | 101 | 88 | 100 | 121 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 6 | 10 | 12 | 18 | 17 | 11 | 9 | 16 | 11 | 11 | 14 | 13 |
| Inventory Days | 63 | 72 | 72 | 56 | 58 | 69 | 79 | 78 | 68 | 63 | 76 | 75 |
| Days Payable | 128 | 136 | 148 | 152 | 144 | 142 | 179 | 169 | 155 | 187 | 185 | 275 |
| Cash Conversion Cycle | -59 | -55 | -63 | -79 | -68 | -63 | -91 | -75 | -76 | -113 | -95 | -188 |
| Working Capital Days | -40 | -43 | -39 | -33 | -36 | -23 | -84 | -25 | -32 | -46 | -37 | -59 |
| ROCE % | 114% | 96% | 74% | 71% | 73% | 65% | 92% | 92% | 79% | 97% | 105% | 108% |
Documents
Frequently Asked Questions about Colgate-Palmolive (India) Ltd
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Company Information
Colgate-Palmolive India Ltd is engaged in manufacturing/ trading of toothpaste, tooth powder, toothbrush, mouthwash and personal care products.[1]