Stock Performance and Market Context
On 24 November 2025, Colgate-Palmolive (India) recorded a day change of -1.10%, underperforming its FMCG sector peers by approximately 0.45%. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a persistent downward trend over multiple time frames.
In contrast, the broader market index, Sensex, experienced a volatile session. After opening 88.12 points higher, it declined by 419.33 points to close at 84,900.71, down 0.39%. Despite this dip, Sensex remains close to its 52-week high of 85,801.70, trading just 1.06% below that peak. The index is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average, indicating underlying market strength.
Long-Term and Recent Stock Returns
Over the past year, Colgate-Palmolive (India) has generated a return of -20.79%, contrasting with the Sensex’s positive 7.31% return during the same period. The stock’s 52-week high was Rs.3115, highlighting the extent of the recent decline. This underperformance extends beyond the last year, as the stock has lagged behind the BSE500 index over the last three years, one year, and three months.
Strong fundamentals, solid momentum, fair price – This Large Cap from the NBFC sector checks every box for our Top 1%. This should definitely be on your radar!
- - Complete fundamentals package
- - Technical momentum confirmed
- - Reasonable valuation entry
Financial Metrics and Valuation
Colgate-Palmolive (India) has exhibited modest growth in net sales, with an annual rate of 5.28% over the last five years. Operating profit has shown a similar pattern, registering a 9.16% annual rate during the same period. However, recent quarterly results indicate a subdued performance, with the latest quarterly profit after tax (PAT) reported at Rs.327.51 crore, reflecting a decline of 6.0% compared to the previous four-quarter average.
The company’s debtors turnover ratio for the half-year stands at 2.64 times, which is relatively low and suggests slower collection efficiency. Despite this, the company maintains a low average debt-to-equity ratio of zero, indicating minimal reliance on borrowed funds.
Return on equity (ROE) remains notably high at 73.11%, demonstrating strong management efficiency in utilising shareholder capital. Nevertheless, the stock’s valuation appears elevated, with a price-to-book value of 37.4, which is considered very expensive. This valuation is in line with the company’s peers’ average historical valuations, suggesting that the market has priced in premium expectations.
Profitability Trends and Institutional Holdings
Over the past year, profits have declined by 9.7%, contributing to the stock’s negative return profile. The combination of flat recent results and subdued profit growth has weighed on the stock’s performance. Institutional investors hold a significant stake of 29.4% in Colgate-Palmolive (India), reflecting confidence from entities with extensive resources and analytical capabilities.
Considering Colgate-Palmolive (India) ? Wait! SwitchER has found potentially better options in FMCG and beyond. Compare this mid-cap with top-rated alternatives now!
- - Better options discovered
- - FMCG + beyond scope
- - Top-rated alternatives ready
Sector and Industry Positioning
Operating within the FMCG sector, Colgate-Palmolive (India) faces competitive pressures that have influenced its stock trajectory. The sector itself has shown resilience, but the company’s stock has not mirrored this trend, as evidenced by its relative underperformance against sector benchmarks.
The stock’s current trading below all major moving averages indicates a cautious market stance. This technical positioning often reflects investor sentiment shaped by recent financial outcomes and valuation considerations.
Summary of Key Concerns
The stock’s fall to Rs.2147.5, its lowest level in 52 weeks, underscores a combination of factors including subdued profit growth, flat recent quarterly results, and a valuation that remains on the higher side relative to earnings and book value. The low debtors turnover ratio points to potential challenges in receivables management, while the high price-to-book ratio suggests that the market has factored in premium expectations that have yet to be realised in earnings growth.
Despite these concerns, the company’s strong return on equity and minimal debt levels highlight operational strengths and financial prudence. Institutional ownership at nearly 30% indicates that significant shareholders maintain positions, reflecting a degree of confidence in the company’s fundamentals.
Conclusion
Colgate-Palmolive (India) has experienced a notable decline in its share price, reaching a 52-week low of Rs.2147.5 amid a broader market environment that remains volatile. The stock’s performance over the past year contrasts with the positive trajectory of the Sensex, reflecting company-specific factors such as profit trends, valuation, and sector dynamics. While the stock currently trades below all key moving averages, its financial metrics reveal a complex picture of both challenges and strengths within the company’s profile.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
