💡 At a Glance
- Q4 Revenue: ₹1,072.15 Cr
- PBT: ₹158.51 Cr
- CMP: ₹2,660
- Fair Value Estimate (FV): ₹1,420
- EduVerdict: This toothpaste is minty… but overpriced.
🏭 About the Company
Colgate-Palmolive (India) Ltd has been guarding Indian gums longer than the Constitution. Makers of:
- Colgate Strong Teeth (because weak teeth are unpatriotic)
- Colgate Vedshakti (for Baba Ramdev competition)
- Palmolive Soaps & Shampoos (boomer nostalgia edition)
Market leader in oral care. But also market leader in pricing arrogance.
🧑💼 Key Management
- MD & CEO: Prabha Narasimhan (ex-HUL, now brushing up Colgate margins)
- CFO: Sameer Satpathy – probably flosses budgets line-by-line
- Owned by Colgate Global – so it’s more American than your toothpaste-loving uncle with a US visa.
📊 Q4 FY25 Highlights
| Metric | ₹ Cr |
|---|---|
| Revenue from Operations | 1,072.15 |
| Other Income | 11.63 |
| Finance Costs | 5.45 |
| Profit Before Tax | 158.51 |
Net margin estimated: 14–18%
Return on Smiles: High
Return on Equity: Even higher
Return on your ₹2,660 investment? Questionable.
🧮 Edu Fair Value Calculation
Let’s brush off the optimism and get real:
- TTM Revenue: ₹4,292.73 Cr
- Assumed Net Margin: 20% = ₹858.5 Cr Net Profit
- Shares Outstanding: ~27.2 Cr
- Estimated EPS: ₹31.56
- Sector P/E (FMCG): 45x
- 🧾 EduFair Value = ₹1,420
😮 CMP is ₹2,660 — nearly 87% higher than intrinsic value.
It’s like buying a ₹50 toothpaste for ₹100 because it “feels premium.”
🧠 EduInvesting Take
Colgate is the king of oral care. Brand loyalty? Insane.
Margins? Creamy.
Management? Polished.
But price? Whitened beyond logic.
This isn’t a growth stock anymore — it’s a fixed deposit in a fancy box.
It won’t crash. But it won’t run either.
🪥 Colgate vs Competition
| Brand | Market Share |
|---|---|
| Colgate | ~50%+ |
| Dabur | ~14% |
| Patanjali | 10–12% |
| Others | Fewer teeth |
India’s oral care market is saturated AF. Growth from here is hard.
New launches like herbal variants can only take it so far.
⚠️ Risks
- Volume Growth Flatlining – Urban market saturated, rural growth slow
- Premiumisation limits – You can’t sell ₹200 toothpaste to Tier-3 India forever
- Patanjali, Dabur – Ayurveda bros are eating away at the base
- Overvaluation Risk – You’re paying ₹2,660 for a ₹1,400 stock
💸 CMP vs FV Recap
| Metric | Value |
|---|---|
| CMP | ₹2,660 |
| Edu Fair Value | ₹1,420 |
| Estimated EPS | ₹31.56 |
| P/E on CMP | 84x (!) |
| Sector Avg PE | 45x |
🧾 Final Floss
Colgate is a cash cow with perfect molars. But even perfect teeth can’t bite through overvaluation.
Edu Verdict:
If you hold it, don’t sell. But if you’re buying now, brush up on patience — you’re already overpaying.
