Miles to go, smiles to grow – steadily and consistently

Research evidence excerpt

Global Markets Research

Colgate-Palmolive (India) COLG.NS CLGT IN

18 August 2026

EQUITY: GENERAL CONSUMER

Miles to go, smiles to grow – steadily and consistently

Rating

Remains

Analyst meet update: Headroom to grow still large across awareness, consumption, distribution,

premiumization; CLGT best placed to capture it with option of new brand/category entry from parent

Target price

Remains

INR 2,550

Closing price

17 August 2026

INR 1,964

Implied upside

+29.8%

Guidance/direction – to accelerate sales growth ahead of profitability in the near term

CLGT reiterated its direction of growing sales ahead of the peers with a balance of volume (category

growth in the mid-single digits) and price+mix growth (mid-single). Its GPM has improved as it has

accelerated premiumization, but it is stepping up A&P, which will limit OPM, leading to profit growth to be

shade lower than sales in the near term – a right strategy for steady and consistent growth, in our view.

Buy

Market Cap (USD mn)

ADT (USD mn)

Headroom to growth still large; CLGT best placed to capture the opportunity, in our view

CLGT highlighted the oral health awareness vs incidence in India is still very low, and there are systemic

health & consumption habits that are impacting it. While the category has reached universal penetration,

there is still significant opportunity to increase: 1) distribution – toothpaste category retail footprint is

8.4mn outlets (CLGT is 7.1mn) which is still 56% (47%) of FMCG universe; 2) consumption – 45% (55%

in 2023) rural households do not brush daily; while only 24% (20% in 2023) of urban brush twice a day; 3)

premiumization – premium toothpaste is still 19% of the category, while for soaps/shampoo it is 2x/3x.

CLGT remain the most considered (90% vs 87% in 2024), most recalled (67% vs 64% in 2024), and most

distributed – 85% of category reach (7.1mn total reach vs 6.6mn in 2024; 1.7mn direct), the widest portfolio

and 3x bigger than the 2nd player. It has been able to do this with superior tech and R&D.

Relative performance chart

Consistent strategy for steady strides – premium growing 6x of core with 400bp+ margins

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