COLPAL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Colgate-Palmolive (India) Ltd (COLPAL) Fundamental Rating: 3.4

🧾 Core Financial Overview

Earnings Position

EPS: ₹16.0 ➜ relatively modest given valuation levels

PAT data unavailable, but historical trends suggest stable margins

Return Metrics

ROE: 158% | ROCE: 179% ➜ extraordinary returns, likely influenced by low equity base

Debt Profile

Debt-to-equity: 0.01 ➜ nearly debt-free — excellent fiscal management

Dividend Performance

Yield at 2.30% ➜ strong passive income potential for FMCG stock

💸 Valuation Breakdown

Metric Value Interpretation

P/E Ratio 140 Massively overvalued vs industry PE of 59.2

P/B Ratio ~183.1 (₹2,215 / ₹12.1) ➜ valuation way beyond intrinsic metrics

PEG Ratio 4.20 Growth not supporting high price — caution

📉 Verdict: Overvaluation across all metrics — PEG > 4 implies earnings lag significantly behind price momentum.

🦷 Business Model & Competitive Advantage

India arm of global Colgate-Palmolive brand — market leader in oral hygiene

Product portfolio: toothpaste, toothbrushes, personal care

Competitive strengths

Brand dominance & distribution reach

High consumer trust

Strong marketing moats in urban and semi-urban regions

📊 Institutional Sentiment

FII Hold ↓ 1.84% ➜ foreign investors reducing exposure, likely on valuation grounds

DII Hold ↑ 1.50% ➜ domestic funds still optimistic, possibly for dividend and safety

📉 Technical Picture

RSI: 24.1 ➜ deeply oversold — potential technical rebound setup

MACD: -53.7 ➜ heavy bearish momentum

Price well below DMA50 & DMA200 ➜ clear short-term weakness

✅ Suggested Entry Zone: ₹2,100–₹2,150 ⚠️ Entry only if technical reversal is validated — valuation still steep even near support levels

🕰️ Long-Term Holding Outlook

COLPAL may suit

Defensive investors prioritizing brand resilience & dividend yield

Those seeking low-debt FMCG exposure with strong consumer stickiness

Portfolios that value stability over aggressive growth

⚠️ However, the extreme valuation signals reduced upside unless growth accelerates or earnings surprise significantly. A more attractive entry would align with a meaningful earnings upgrade or sector-wide correction.

Would you like me to pit COLPAL against HUL or Dabur for a FMCG deep dive? We could uncover stronger compounding potential with better earnings alignment.

Edit in a page