Colgate-Palmolive India is one of the most prominent fast moving consumer good companies in the country. It is focused primarily on personal care and oral care items with Colgate toothpaste being the company’s flagship product.
The market capitalisation of Colgate-Palmolive India Limited, as of June 4, 2018, is roughly Rs.33,560 crore.
Company’s Wealth and Recent Performance
- In the fourth quarter of the FY 2017-18, Colgate-Palmolive India reported an increase of 5% in its net sales on adjusted basis, over the same period last year. The net sales, which stood at Rs.1,085.1 crore, were driven mainly by a strong growth in volume despite a competitive business environment.
- The net profit after tax for the quarter was reported to be Rs.187.7 crore, in contrast to Rs.142.5 crore in the same quarter of the previous year. The net PAT also included the tax reversals of Rs.17.79 crore. This increase of roughly 25% in the net PAT was observed owing to a strong gross margin expansion.
- Considering the performance of the company over the entire FY 2017-18, its net sales on an adjusted basis improved marginally by 5.3% over the previous fiscal year. The final net sales tally for the year stood at Rs.4,159 crore.
- The net profit after tax for the year stood at Rs.673.4 crore - an increase of roughly 15% over the previous year after excluding tax reversals and exceptional items. The company managed to deliver such strong figures as it maintained its focus on improving their gross margins, promoting growth in their key categories, and meeting the needs of their consumers.
- At the same time, Colgate-Palmolive India’s market share fell to 53.4%, in contrast to 55.1% in the same period last year.
- The company’s assets, as of March 31, 2018, is priced at Rs.2,563.9 crore.
Colgate-Palmolive India Limited Stock Trends in 2018
- At the start of 2018, the share price of Colgate India was roughly Rs.1,100 on NSE and BSE. The price rose steadily over the course of January to touch Rs.1,150 but failed to sustain that heading. The closing price on January 31, 2018, was Rs.1,121 on NSE.
- In February, Colgate-Palmolive India reported healthy Q3 numbers. However, despite a solid performance, the company’s share price went downhill - a trend that was quite in line with the performance of indices like Nifty 50 and BSE SENSEX. The closing price at the end of February on NSE was Rs.1,041 crore.
- Things did not change a lot in the month of March as the investors exercised caution in the backdrop of rising geopolitical tensions and rocky market conditions. In the month of April, however, the Colgate Palmolive stock price recovered to cross Rs.1,080 levels again. On April 30, the closing price of the stock was Rs.1,123.
- The month of May proved to be a brilliant one for the investors. The share price of Colgate moved up by approximately 10%. The closing price at the end of the month was Rs.1,259 on NSE. Interestingly, the stock price managed to sustain its bull run at a time when Nifty 50 and SENSEX were going down.
Colgate-Palmolive India Stock Trends in 2016 and 2017
- At the start of 2016, the Colgate-Palmolive stock price was at levels well-above Rs.970. By mid-February however, the share price had gone down to levels below Rs.850. Things did not change significantly in the month of March as the stocks continued to be traded in the Rs.800 territory. In April as well, the share price of Colgate didn’t undergo any major fluctuations. However, an interim dividend of 300% was announced in the month.
- The Colgate India share price continued to maintain its bearings at levels around Rs.860 in May. After weeks of bearish behaviour, the stock price started to rise at the start of June. From trading at around Rs.860, it went to cross Rs.900 by the end of the month. The price continued to rise through the months of July and August, 2016. Around the same time, the shares started to touch the Rs.1,000 mark in daily trading sessions.
- The stock price of Colgate-Palmolive India at the start of September was around Rs.950. Things didn’t vary significantly up until demonetisation, post which the price went down to touch Rs.920. This bearish behaviour was seen in the month of December as well, with the closing price at the end of the month being Rs.904. Two interim dividends of 400% and 300% were announced in this period.
- 2017 started on a rather dull note for the investors. Through the months of January and February, the stock price attempted to break past the Rs.900 level and commence another bull run. However, it wasn’t until March that the price started to rise again. In fact, at the end of March, the Colgate share price was around Rs.1,008.
- In April, an interim dividend of 300% was announced. The stock price continued to go through its usual ups and downs, but it managed to remain above the Rs.1,000 mark. In the month of June, the prices rose further to cross Rs.1,100 but in July, the Colgate shares shed their recently made gains and entered the Rs.1,000 territory.
- The Colgate stocks commenced another bull run in August. The outcome this time was quite similar to its previous bull run - the shares once again found themselves at levels above Rs.1,100 in September. However, this proved to be the last bull run for that year.
- The prices fell after mid-September, though they didn’t go below Rs.1,000. An interim dividend of 400% was announced in October and December which kept investors sentiments high. The closing price at the end of the year was Rs.1,000.
Should you invest in Colgate-Palmolive (India)?
- Colgate is undoubtedly one of the most trusted names in the Indian household. It cemented its position in the Indian market by establishing an absolute dominance in the oral care sector. Over the course of last couple of years, its stock price has reflected the same. If we are to consider the performance of Colgate stock between January 2017 and June 2018, we will realise that it has grown by roughly 20%.
- However, it is important to note that the market share of Colgate-Palmolive India has been drastically impacted with the advent of companies like Patanjali. Nonetheless, it still managed to deliver healthy numbers in an increasingly competitive business environment. The company has also been consistent with dividend payouts, with the most recent one coming at the end of May.
- The P/E ratio of Colgate-Palmolive India is close to 50. In comparison to its other peers like Dabur India, Emami, Hindustan Unilever Limited and others, this ratio is considerably lower. It implies that the stock is undervalued in the industry and is quite likely to rise further in the coming years. However, P/E ratio shouldn’t be the only factor you use to evaluate the company’s performance.
- It will be interesting to see how Colgate-Palmolive stocks perform in the coming months, especially the rise in competition. From a long-term perspective, investing in this stock may seem like a feasible idea, but it is recommended that you do your own research before investing. Alternately, you can also look into mutual funds with holdings in the Colgate stock, considering that the stock is quite expensive for an ordinary investor.
Colgate-Palmolive India Limited is a consumer goods company that is known for its comprehensive product offerings in the oral hygiene section. It primarily sells toothpaste, toothbrushes, mouthwashes, and dental floss. The company has been in India for more than four decades now is among the most preferred brands when it comes to oral care. In fact, Colgate-Palmolive is one of the few brands in the country whose products have been purchased by more than half of all households. The company is also focussed on promoting good oral hygiene among the people and for this purpose, it has been working in partnership with the Indian Dental Association since 1976.
History of the Company
The roots of Colgate-Palmolive India can be traced back to the early 1800s when William Colgate set up a soap and candle factory in the New York City. When he passed away in 1857, his son Samuel Colgate took over the company. It wasn’t until 1873 that the firm introduced its first Colgate toothpaste which was being sold in glass jars. In 1896, the company started selling the toothpaste in a collapsible tube. Sometime in the late 1920s, a soap company named Palmolive-Peet bought the Colgate company to create Colgate-Palmolive-Peet Company. However, the word ‘Peet’ was dropped eventually.
Colgate-Palmolive entered the Indian market in 1937 and started its journey by using handcarts to sell Colgate Dental Cream, toothbrushes, and tooth powder. It also introduced Palmolive shaving cream around the same time. Over the course of next few decades, Colgate moved on to consolidate its position in the Indian market by diversifying its product portfolio and starting manufacturing operations in Mumbai. By late 1990s-early 2000s, the company had become a market leader in the oral hygiene segment.
Management of the Company
Vinod Nambiar - Chairman
Mr. Vinod Nambiar has been with Colgate-Palmolive (India) since 1999. Over the years, he has held several key positions like Customer Development Director of CP India, General Manager of CP-Romania, and Vice-President & General Manager of CP Italy. He held a very similar position in New York, in the company’s Global Personal Care department. After his stint in the States, he moved to China where he served as the Vice-President and General Manager of CP, Greater China Hub. He was appointed as the Chairman of CP India in 2015 and in addition to this, he also serves as the President of CP Asia Pacific Division.
M.S Jacob - Whole-time Director and Chief Financial Officer
Mr. Jacob has been with Colgate-Palmolive India for a little over two decades now. He has played an instrumental role in the company’s finance division at its various subsidiaries Thailand, Vietnam, Asia Pacific Division, and Malaysia. Prior to becoming the Chief Financial Officer of CP India, he served as the Finance Director of CP-Malaysia.
Issam Bachaalani - Managing Director
Mr. Bachaalani has been with Colgate-Palmolive since 1991 when he joined the company as the part of the Global Marketing Development Program. Over the course of his impressive career, he has globally held various key positions in several divisions and subsidiaries. He first served as the Marketing Manager of the Central Europe/Russia Division and followed it with a promotion to the Associate Director post of Household Surface Care - CP Mexico. He has also served as the Marketing Director of CP South Africa and General Manager of CP Hong Kong. He also served as the General Manager of Colgate-Palmolive Malaysia, Singapore, and Brunei.
Colgate-Palmolive India Limited Listings in NSE, BSE, and Indices
If you are looking to purchase the shares of Colgate-Palmolive India Limited, then the following information may prove to be useful:
- BSE Code - 500830
- NSE Code - COLPAL
- ISIN - INE259A01022
- Sector - Personal Care
The company’s stocks are listed on the National Stock Exchange of India Limited and The Stock Exchange, Mumbai.
Coming to the stock market indices, the company comprises the following indices:
- NIFTY 100
- NIFTY 500
- S&P BSE 100
- S&P BSE 200
- NIFTY Next 50
These are just some of the many indices which have Colgate-Palmolive India Limited. You can find the entire list online.
Colgate Research Centre
Main Street, Hiranandani Gardens,
Powai, Mumbai - 400076
Maharashtra - India
Phone number - 022-67095050
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.