Colgate-Palmolive India shares upgraded by Nomura, but majority analysts still say 'sell'

Shares of Colgate Palmolive (India) Ltd. are in focus on Monday, May 25, after brokerage firm Nomura upgraded the stock on its fourth quarter results. However, majority of the analysts prefer to either remain "neutral" or bearish on the stock.

Along with the Nomura upgrade, Jefferies also has a "buy" recommendation, while HSBC has a "hold", Kotak Institutional Equities has a "reduce" and Citi has a "sell" rating.

Nomura

The brokerage has upgraded the stock to "buy" from "reduce" and has also raised its price target to ₹2,500 from ₹2,050 earlier.

It said the company's core business is returning to normal levels. It is doubling down on premiumization to aid growth and margins.

Nomura expects Colgate's revenue growth momentum to improve and return to near-double-digits in FY27 compared to being flat in FY26. This should be led by an improvement in volume growth, which witnessed a revival in the fourth quarter to 4.5% after seeing four quarters of declines.

The brokerage expects a favourable base to be supportive and drive mid-single-digit volume growth and also mark the return of pricing growth back to mid-single-digit after low-single-digit growth in FY26. Despite that, Nomura does not see any volume backlash.

Jefferies

The brokerage has a "buy" rating and a price target of ₹2,600 apiece.

It said while the company's core product has sticky customer behavior, its revenue growth is more variable with the company's FY26 quarterly ranging for -6% to 9% in the fourth quarter.

The company's presentation focused heavily on oral care, but little beyond, according to Jefferies, who added that the parent company could take cues from Indian franchises such as Marico and Tata Consumer.

It added that Colgate has a favourable base in FY27, which should proper EPS growth to double-digits, a first in three-year hiatus, which should bring some investor interest back.

HSBC

The brokerage has a "hold" rating on the company with a price target of ₹2,150 per share. It said the company's fourth quarter sales were up 9%, a 4% beat and its topline split equally between volume and value.

The company saw a positive impact on its premium portfolio, and premiumisation remains the key long-term driver.

HSBC has lifted its estimates for the company's FY27 EBITDA by 1% and it doesn't see the growth trajectory changing.

Kotak Institutional Equities

The brokerage has a "reduce" rating with a price target of 2,025 apiece.

It has reported 9% growth in revenue, which is ahead of its peers, the brokerage said, adding that the print was driven by a balanced volume and pricing growth.

The company's EBITDA margin contracted 210 basis points to 31.9% on account of gross margin (GM) decline and inverted duty structure impact, it said.

While the company's management expects growth momentum to sustain, it has called out the EBITDA margin pressure in the near term, given the lack of GM tailwinds, step-up in advertisements and promotion spends and continued impact of inverted duty structure.

Citi

The brokerage has a "sell" rating and a price target of ₹2,050 apiece on the stock.

It said the company's fourth quarter performance and management commentary indicate a gradual recovery in growth, supported by improving category trends, a pick-up in urban demand and a favourable base.

With this, the company's volume is likely to remain steady rather than sharp, Citi said.

The company continues to reply on premiumisation as its key growth leverl, with its premium mix — Colgate Total, Visible White, therapeutics — up 35% over the past two years, supported by elevated media investments and favourable e-commerce mix.

However, the company's margin outlook suggests increasing pressure, driven by higher advertising intensity, GST-related headwinds and sustained competitive intensity, Citi's note said.

Of the 31 analysts who have coverage on the stock, eight have a "buy" rating, 12 have a "hold" rating and 11 have a "sell" rating.

Shares of Colgate Palmolive (India) Ltd. ended the previous session 0.4% lower at ₹2,156.9 apiece. The stock is only up 3% so far in 2026.

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