Colgate-Palmolive Company is an American multinational consumer products company which has their headquarters in the New York City, USA. The company has specialization in the production, distribution, and provision of household, health care, personal care, and veterinary products. Colgate has numerous subsidiary organizations spanning 200 countries, but it is publicly listed in three, the United States, India, and Pakistan.
The company ranked 184th on the 2018 Fortune 500 list of the largest United States corporations by revenue. In 2021, the company ranked 15th on the list of Most Trusted Brands by Morning Consult.
Colgate-Palmolive India Ltd is engaged in manufacturing / trading of toothpaste, tooth powder, toothbrush, mouthwash and personal care products in India.
Quarterly Growth
Colgate-Palmolive (India) has reported an absurd 3.34 percent year-on-year quarterly growth in profit for the September quarter, with operating margin beating estimates of financial analysts. The net profit reported stood at Rs 278 crore in the September 2022 quarter which has grown by a mere Rs 9 crore from Rs 269 in the previous quarter of September 2021.
Total Sales have increased to Rs 1387 crore in the September 2022 which is a mere growth of 2.58 percent from Rs 1352 reported in the same quarter of the previous year, yet again a shockingly poor performance by the FMCG giant. Gross margin has shrunk higher than 3 percentage points to 70.72 percent.
Colgate has declared its first interim dividend of Rs 18 per share for the financial year 2022-23.
Prabha Narasimhan, Managing Director, has said in her public statement that “Colgate continues to remain cautiously optimistic on the overall growth trend, especially in rural areas, and is encouraged by the growth of modern trade and e-commerce businesses in the current quarter. Core brands like Colgate Strong Teeth, Colgate MaxFresh, and Colgate Active Salt have continued to report healthy growth. While the macroeconomic environment stabilizes, our endeavour will be to deliver sustainable gross margins and continue to invest in core while driving premiumization and category expansion into personal care.”
Technical Analysis
Colgate-Palmolive stock price has been stagnant in the range of Rs 1820 – Rs 1420 for the past 2 years. The poor performance delivered by the company has been the cause of loss of interest and hence operators have been reluctant towards this stock. The new director might give direction to the company which can be observed in the coming months, however for now, ColPal has no hope of growth with the poor quarter.
The stock has been taking heavy support at the 38.2% retracement level at Rs 1533. The price is above the 100-day moving average which denies us the opportunity for a short-term trade as the stock is expensive. MFI stands at 71 points which again signifies that the stock is overbought.
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