.png){kind=logo}
The firm that has been in business for a relatively long time in the production of personal care products such as oral care is Colgate-Palmolive (India) Ltd. It has established itself as one of the oldest and the growing companies in Indian industry catering to the diversified product line. This relates to products used in the mouth; body and face cleaning products used in the shower or bath as well as shaving, hair and skin products; and cleaning products for the home and garden led by the AXIOM dishwashing paste.
More recently, the company has also ventured into the production of products for dental health professionals incorporating products for such conditions as gingivitis, mouth ulcers and sensitive teeth as well as specialty cleaning and whitening.
The latest closing of this share is at INR 2,985.85 with -80.25 INR (-2.62%) fall on Bombay Stock Exchange of Colgate-Palmolive (India) Ltd. The company has a PE ratio of about 90.18, and EPS of 33.11. The earnings per share growth for Colgate-Palmolive during the last five years which stands at 0.33 shows that the company shares have low volatility.
The forward dividend yield is 1.57% with a dividend payment of 48.00 INR. The ex-dividend date isNovember 4th 2024. We are now looking ahead to the upcoming earnings release, expected between January 20th and January 24th 2025. The company’s 1-year target estimate is set at 1,225.19 INR.
The company is capitalized at INR 833.94 billion and enterprise value of INR 820.78 billion as at November 1st 2024. The trailing P/E ratio of the company is 92.19, which is actually the projection of investors in the company for future earning. Key valuation metrics include a price-to-sales (P/S) ratio of 13.91 and a price-to-book (P/B) ratio of 50.46, suggesting a premium over book value.
The enterprise value-to-revenue (EV/Revenue) is 13.69 and the enterprise value-to-EBITDA ratio is 38.24, indicating a high valuation relative to its earnings before interest, taxes, depreciation, and amortization.
Colgate-Palmolive (India) Ltd. demonstrates strong profitability, with a profit margin of 24.48% and a robust return on assets (ROA) of 36.23%, indicating efficient asset utilization. The return on equity (ROE) is an impressive 86.00%, showcasing substantial returns on shareholder investments. The company has generated INR 60.01 billion in revenue over the trailing twelve months (ttm) and a net income attributable to common shareholders of INR 14.69 billion, with a diluted EPS of 33.11.
On the balance sheet, total cash stands at INR 13.38 billion with a conservative debt-to-equity ratio of 4.24%, highlighting financial stability. The company’s levered free cash flow for the trailing twelve months is INR 13.8 billion, underscoring its strong cash-generating ability.
Colgate-Palmolive (India) Ltd has delivered impressive returns compared to the S&P BSE SENSEX benchmark:
Year-to-Date (YTD) Return: Achieved a +21.04% return outperforming SENSEX’s +9.06%.
1-Year Return: The company posted a +47.03% return significantly higher than the SENSEX’s +22.40%.
3-Year Return: Over three years, COLPAL.BO achieved a +109.96% return, compared to the SENSEX’s +31.80%.
5-Year Return: COLPAL.BO delivered a +118.59% return, surpassing the SENSEX’s +96.15%.
This strong performance across various time horizons highlights the company’s ability to generate substantial returns for investors, consistently outperforming the broader market.
Key Technical Indicators:
Beta (5Y Monthly): 0.33, indicating low volatility compared to the market.
52-Week High: 3,893.00
52-Week Low: 2,087.10
52-Week Range Change: 44.92%
S&P 500 52-Week Change: 31.21%, showing relative outperformance.
50-Day Moving Average: 3,559.58
200-Day Moving Average: 2,991.44
Recently the stock has been experiencing a bearish trend after reaching the high of 3,893.00 on September 30th. Price movement suggests a downtrend, potentially testing a critical ascending trendline as support.
Current potential support lies at the ascending trendline.
If the trendline is broken, the next target support level is around 2,600 zone.
Monitoring the price action near the ascending trendline is crucial to determine if this support will hold or if the price will continue to decline towards the next major support at 2,600. The price's behavior relative to moving averages may also provide insights into potential trend reversals or continuation.
The company has established itself as a reliable player in the process of establishment of the personal care business due to significant market share it owns and sound financials it boasts of. The high profitability Symbols, high return on equity and assets, and sound financial management give a testimony of its robust and future growth.
But as of late September 2024 based on the technical analysis, investors may have bearish trend to consider but long term investors may wish to find opportunities should the price remain above important support levels. Having delivered very healthy historical returns which have been much higher than SENSEX, the company is a good investment opportunity for those who are willing to invest in the Indian market and who are overweight on Colgate-Palmolive (India) Ltd.
