Motilal Oswal has given Colgate a Neutral rating and set a target price of Rs 3,250.

Colgate's oral care business is focused on driving volume and value growth, particularly in the toothpaste and toothbrush categories. The company's personal care portfolio is also expanding.

Colgate has seen a slowdown in toothpaste volume growth in urban markets since March 2024, but toothbrush growth remains steady. In contrast, rural markets are experiencing positive growth in both categories, which aligns with trends in the broader FMCG sector. Notably, in the second quarter of FY25, urban toothpaste volume growth fell behind rural growth for the first time, while urban toothbrush volumes matched rural levels.

Looking ahead, Colgate is expected to achieve a compound annual growth rate (CAGR) of 9% in sales, 10% in EBITDA, and 11% in adjusted PAT from FY24 to FY27.