Colgate Palmolive (CLGT IN) – Q3FY26 Result Update – Volumes languish, lacks triggers – HOLD
Published on 30 Jan 2026
We expect gradual volume to set in given benefits of GST cuts, however such impact in oral care has been seen to be muted even in 2017-18. CLGT’s long-term drivers remain intact, led by (1) strengthening core toothpaste franchises and (2) premiumization through science-backed innovations within oral care. However, competitive intensity, higher growth in naturals segment and likely loss of market share remains a drag. We expect volume growth to normalize at mid-single digits, with 7–8% sustainable PAT growth over the long term given limited margin headroom. We estimate 7.9% EPS CAGR over FY26–28. We value CLGT at 40x Dec’27 EPS, with a target price of ₹2,319 (₹2355 earlier based on 42xSept27 EPS). The stock lacks triggers, although downside seems limited. Retain HOLD.
