URL copied to clipboard
Colgate Palmolive Fundamental Analysis

5 min read

Colgate Palmolive Fundamental Analysis

Colgate-Palmolive (India) Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹91,608.84 crore, PE ratio of 69.21, debt-to-equity ratio of 3.83, and return on equity of 73.73%. These figures reflect the company’s financial health and current market valuation.

Colgate Palmolive (India) Ltd Overview

Colgate-Palmolive (India) Ltd is a leading manufacturer of oral care and personal care products in India. It operates in the fast-moving consumer goods (FMCG) sector, specializing in toothpaste, toothbrushes, and personal care items under the Colgate and Palmolive brands.

The company has a market capitalization of ₹91,608.84 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 1.69% below its 52-week high and 76.44% above its 52-week low.

Colgate Palmolive (India) Financial Results

Colgate-Palmolive (India) Ltd demonstrated consistent growth from FY 22 to FY 24, with sales rising from ₹5,100 crore to ₹5,680 crore and net profit increasing from ₹1,078 crore to ₹1,324 crore. The company maintained strong profitability and stable EPS over the years.

1. Revenue Trend: Sales increased from ₹5,100 crore in FY 22 to ₹5,226 crore in FY 23, and further to ₹5,680 crore in FY 24, indicating steady revenue growth.

2. Equity and Liabilities:  Equity Capital remained at ₹27.20 crore, Reserves increased from ₹1,694 crore to ₹1,849 crore, Non-Current Liabilities slightly increased from ₹81.97 crore to ₹82.82 crore, and Current Liabilities rose from ₹1,085 crore to ₹1,239 crore.

3. Profitability: Operating Profit Margin (OPM) remained strong at 31% in FY 22, 30% in FY 23, and improved to 33% in FY 24, reflecting consistent operational efficiency.

4. Earnings per Share (EPS): EPS slightly decreased from ₹39.65 in FY 22 to ₹38.5 in FY 23, but then increased to ₹48.67 in FY 24, indicating strong profit growth per share.

5. Return on Net Worth (RoNW): While RoNW isn’t directly mentioned, the increasing net profit from ₹1,078 crore in FY 22 to ₹1,324 crore in FY 24 suggests a positive impact on RoNW, indicating better returns on shareholders’ equity.

6. Financial Position: The company’s financial position strengthened with EBITDA increasing from ₹1,592 crore in FY 22 to ₹1,977 crore in FY 24, despite stable interest and depreciation expenses, showcasing robust financial health and management.

Colgate Palmolive Financial Analysis

FY 24FY 23FY 22
Sales568052265100
Expenses378036793534
Operating Profit190115471566
OPM %333031
Other Income57.0242.3726.26
EBITDA197716011592
Interest54.915.89
Depreciation171.51174.8177.3
Profit Before Tax178114101409
Tax %25.6925.7223.47
Net Profit132410471078
EPS48.6738.539.65
Dividend Payout %119.17101.3100.88

* Consolidated Figures in Rs. Crores

Colgate Palmolive Company Metrics

Colgate-Palmolive (India) Ltd has a market cap of ₹91,608.84 crore and a book value of ₹68.9 per share. With an asset turnover ratio of 1.89 and a total debt of ₹71.75 crore, the company shows a ROE of 73.73%. Its quarterly EBITDA is ₹531.74 crore, and the dividend yield is 1.28%.

Market Capitalization: 

Market Capitalization represents the total market value of Colgate-Palmolive (India)’s outstanding shares, amounting to ₹91,608.84 crore.

Book Value: 

The book value per share of Colgate Palmolive is ₹68.9 indicating the value of the company’s net assets divided by its shares outstanding.

Face Value: 

The face value of Colgate-Palmolive (India) shares is ₹1, which is the nominal value of each share as stated on the share certificate.

Asset Turnover Ratio: 

The Asset Turnover Ratio of 1.89 measures how efficiently Colgate-Palmolive (India) uses its assets to generate sales revenue or sales income.

Total Debt: 

The Total Debt of Colgate-Palmolive (India) stands at ₹71.75 crore, representing the total amount of money the company owes to creditors.

Return on Equity (ROE): 

The ROE of 73.73% measures Colgate-Palmolive’s (India) profitability by revealing how much profit the company generates with the money shareholders have invested.

EBITDA (Q): 

The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Colgate-Palmolive (India) is ₹531.74 crore, indicating the company’s operating performance.

Dividend Yield: 

The dividend yield of 1.28% shows the annual dividend payment as a percentage of Colgate-Palmolive (India)’s current share price, indicating the return on investment from dividends alone.

Colgate Palmolive (India) Stock Performance

Colgate-Palmolive (India) Ltd delivered returns of 71.5% in one year, 27.3% over three years, and 22.5% over five years, showcasing strong growth potential and robust performance across multiple periods.

PeriodReturn on Investment (%)
1 Year71.5 
3 Years27.3 
5 Years22.5 

Example: If an investor had invested ₹1,000 in Colgate-Palmolive (India) Ltd stock:

1 year ago, their investment would be worth ₹1,715.

3 years ago, their investment would have grown to ₹1,273.

5 years ago, their investment would have increased to approximately ₹1,225.

Colgate Palmolive Peer Comparison

Colgate-Palmolive (India) Ltd, with a CMP of ₹3436.25 and a P/E ratio of 66.08, has a market cap of ₹93,461.14 Crores and an impressive one-year return of 71.5%. Compared to peers like Hindustan Unilever and Gillette India, which had returns of 7.18% and 36.16%, respectively, Colgate-Palmolive shows remarkable market performance.

NameCMP Rs.P/EMar Cap Rs.Cr.1Yr return %Vol 1d1mth return %From 52w highDown %6mth return %
Hind. Unilever2748.0562.43645679.57.1824354516.30.982.2713.44
Colgate-Palmolive3436.2566.0893461.1471.543568915.0810.2533.8
P & G Hygiene1718174.8755770.787.36416-0.10.8910.751.64
Gillette India7829.465.8525516.0136.16116643.550.964.4612.38

Colgate Palmolive (India) Shareholding Pattern

Colgate-Palmolive (India) Ltd’s shareholding structure has remained largely stable, with promoters consistently holding 51%. FII ownership slightly decreased from 24.62% in December 2023 to 24.44% by June 2024. DII shares increased marginally, while retail and others showed little change. Other income rose from 26.26 to 57.02, indicating improved financial management.

Jun-24Mar-24Dec-23
Promoters515151
FII24.4424.5124.62
DII66.15.88
Retail & others18.5418.3818.5
Other Income57.0242.3726.26

Colgate Palmolive India History

Colgate-Palmolive (India) Limited is a prominent player in the Indian personal care market, specializing in oral care products. The company’s core business revolves around manufacturing and trading toothpaste, tooth-powder, toothbrushes, and mouthwash under the globally recognized Colgate brand. Additionally, it offers personal care products under the Palmolive brand.

The company’s product portfolio is diverse and innovative, catering to various consumer needs. Key products include Colgate Max-Fresh Charcoal Toothpaste, Colgate PerioGard Toothpaste, KEEP Toothbrush, and Visible White O2 Toothpaste. Colgate-Palmolive (India) also offers advanced electric toothbrushes and the Super Flexi Toothbrush, demonstrating its commitment to product innovation in the oral care segment.

Colgate-Palmolive (India) operates through a robust distribution network, collaborating with a wide array of wholesalers, modern trade stores, and other retailers. This extensive network ensures that the company’s products are readily available to customers across India. The company maintains four manufacturing facilities strategically located throughout the country, supporting its production and distribution capabilities.

How To Invest In Colgate Palmolive (India) Ltd Share?

To invest in Colgate Palmolive (India) Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.

Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Colgate Palmolive shares at your preferred price.

Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.

Colgate Palmolive (India) Limited Fundamental Analysis – FAQs

1. What Is The Fundamental Analysis Of Colgate Palmolive (India)?

Fundamental analysis of Colgate-Palmolive (India) examines key financial metrics: Market Cap (₹91,608.84 crore), PE Ratio (69.21), Debt to Equity (3.83), and Return on Equity (73.73%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the FMCG sector.

2. What is the Market Cap of Colgate Palmolive (India) Ltd?

The market capitalization of Colgate Palmolive (India) Ltd is ₹91,608.84 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.

3. What Is Colgate Palmolive (India) Limited?

Colgate Palmolive (India) Limited is a leading manufacturer of oral care and personal care products in India. It specializes in producing and marketing toothpaste, toothbrushes, mouthwash, and personal care items under the Colgate and Palmolive brands, with a strong presence in the Indian FMCG market.

4. Who Is Colgate Palmolive Limited Owner?

Colgate Palmolive (India) Limited is a subsidiary of Colgate-Palmolive Company, USA. While the parent company holds a significant stake, it’s a publicly listed company in India with multiple shareholders. The company is professionally managed by a board of directors appointed in accordance with corporate regulations.

5. Who Are The Main Shareholders Of Colgate Palmolive (India)?

The main shareholders of Colgate Palmolive (India) typically include Colgate-Palmolive Company, USA (the parent company), institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current and accurate information on major shareholders, refer to the latest shareholding pattern disclosed by the company.

6. What Type Of Industry Is Colgate Palmolive (India)?

Colgate Palmolive (India) operates in the Fast-Moving Consumer Goods (FMCG) industry, specifically in the personal care and oral care sectors. The company is a key player in manufacturing and distributing toothpaste, toothbrushes, mouthwash, and other personal care products in the Indian market.

7. How To Invest In Colgate Palmolive Ltd Share?

To invest in Colgate Palmolive shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.

8. Is Colgate Palmolive Overvalued Or Undervalued?

Determining if Colgate Palmolive is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.

All Topics
Related Posts
Finance

Best Ship Building Stocks In India

The table below shows the best ship building stocks in India based on the highest market capitalization. Name Market Cap (Cr) Close Price Mazagon Dock

Finance

Best Three-Wheelers Stocks In India

The table below shows the best three wheeler stocks in India based on the highest market capitalization. Name Market Cap (Cr) Close Price Mahindra and

AU Small Finance Bank Fundamental Analysis English
Finance

AU Small Finance Bank Fundamental Analysis

AU Small Finance Bank Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹46,974.68 crore, PE ratio of 30.61, and return on equity