Colgate-Palmolive cracks 4% after FMCG major announces premiumisation plan
Colgate-Palmolive India Share Price NSE: Brokerages are mixed on the FMCG major post the company made a presentation before its investors earlier this week.
Colgate-Palmolive India Share Price NSE: Shares of Colgate-Palmolive India Limited, NSE: COLPAL, cracked nearly 4 per cent on Wednesday, December 14, after the company announced premiumisation plan during its annual investor day.
At 12:45 PM, the stock traded at Rs 1,582 apiece on NSE, down 3.85 per cent. YTD, the counter has given a positive return of 8 per cent while the Nifty FMCG jumped more than 20 per cent in the same time period.
Brokerages are mixed on the FMCG major post the company made a presentation before its investors earlier this week.
While Jefferies has tagged a 'buy' call on Colgate-Palmolive India with a target price of Rs 1850, JP Morgan and Nomura in their reports have maintained a 'neutral' rating with a target of Rs 1645 and Rs 1600, respectively.
"Will look to scale up personal care business and ramping up digitalisation investments," Nomura said in its report.
Citi has given a 'sell' recommendation on the counter with a target price of Rs 1450. The firm said that focusing on driving revenue through a two-pronged strategy and on both volume growth and premiumisation is likely a tall ask.
"The company could require sustained investments with results likely to be delayed and would watch out for investments to drive change in consumer habit," it said.
According to an exchange filing by the company, powered toothbrushes and teeth whitening products are some of its focus areas in premiumisation plan. The company said that it is also planning to set up an exclusive professional eB2B platform for dentists. It would be called DentistFirst. Besides, it also announced to build a new segment dedicated to kids.
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