Colgate-Palmolive gains over 3% as JPMorgan upgrades to 'Overweight

Colgate-Palmolive (India) Ltd. shares rose over three per cent in Thursday's trade, buoyed by JPMorgan's upgrade to Overweight from Neutral. The brokerage cited potential earnings growth driven by newer verticals and category expansion as key factors for the upgrade.

Management’s confident outlook during its investor day highlighted initiatives in marketing and category development, which analysts believe will support sustained market share growth.

Stock performance
The stock hit an intraday high of Rs 3,115 and a low of Rs 3,031.05, before settling at Rs 3,050.75, a 1.04 per cent gain from the previous session's close of Rs 3,019.30. Colgate-Palmolive's 52-week range spans from a low of Rs 2,158.10 to a high of Rs 3,893.

Key financials
For Q2FY25, the company posted consolidated sales of Rs 1,695.09 crore, reflecting an 11.51 per cent sequential growth and a 13.6 per cent year-on-year increase. Net profit stood at Rs 395.05 crore, up 16.17 per cent from the same period last year.

Valuation metrics and ownership
Colgate-Palmolive trades at a price-to-earnings (P/E) multiple of 56.68 and a price-to-book ratio of 27.81. Promoters hold no stake in the company, while FIIs own 24.94 per cent and mutual funds hold 3.57 per cent as of September 2024.

Despite a 1.8 per cent decline over the past month, the stock remains a top pick for analysts due to its robust growth potential and strong market positioning in the personal care sector.