Colgate-Palmolive has been given a 'REDUCE' rating by Emkay Global Financial, with a target price of Rs 3,000. The company's recent 'Investor Day' emphasized its commitment to increasing category consumption and improving consumer engagement, particularly in urban markets where the focus is on promoting the habit of brushing twice daily.
Efforts are also being made to enhance usage in rural areas, although growth in urban markets is slowing down and rural recovery seems to be leveling off. Colgate is pursuing a strategy that combines volume and price growth, while its non-oral care segment, primarily represented by the Palmolive brand, is still underdeveloped and mainly focused on body and hand wash products. The management aims to maintain profit margins within historical ranges, but analysts believe that the current valuations already reflect the company's strong performance in the oral care sector.