Colgate Palmolive (CLGT IN) – Q2FY26 Result Update – Competitive pressure to limit gains from GST 2.0 – HOLD
Published on 23 Oct 2025
CLGT’s long term drivers are intact led by 1) driving core toothpaste brands and 2) premiumization through science-backed innovations (driving growth in urban premium segments), however, heightened competitive pressure remains a key concern. While GST 2.0 might provide some initial volume uptick on a low base from 3Q/4Q26 onwards, we expect volume growth to settle at mid-single digits with 7-8% sustainable PAT growth in the long term given little scope to expand margins from current elevated levels. We estimate 8.4% EPS CAGR over FY26-28. We value CLGT at 44x sept27 EPS and assign a target of Rs2534 (Rs2453 earlier on Mar27 EPS). Retain Hold.
