Intro
Hello everyone, I’m Kaneka. Today, I’ll be analyzing Colgate Palmolive Limited. We’ll look at both the fundamental analysis and the technical chart patterns of the stock.
Technical Analysis
On September 30, 2024, Colgate Palmolive hit its lifetime high of $46.50 (₹3,860). Since then, the stock has been on a downward trajectory, falling nearly 40% to a low of $27.90 (₹2,316). Currently, the stock is trading about 30% below its lifetime high.
One key level to watch is $35.55 (₹2,950), which has acted as a resistance zone multiple times. The stock tested this level in November 2024, December 2024, January 2025, and again in February 2025. Each time, it failed to break through convincingly.
This repeated testing has created a complex reverse head and shoulders pattern. The structure shows multiple shoulders forming, followed by a head, and potentially more shoulders. Alongside this, a cup and handle pattern has also emerged in the short term.
Both patterns suggest the possibility of an upward breakout if the resistance is crossed with strong volume.
Key Technical Levels
| Metric |
Value (USD) |
| Lifetime High |
$46.50 (Sept 2024) |
| Lifetime Low |
$27.90 |
| Current Price |
~30% below high |
| Resistance Level |
$35.55 |
| Long-Term Pattern |
Reverse Head & Shoulders |
| Short-Term Pattern |
Cup & Handle |
Fundamental Analysis
Colgate Palmolive is one of the most recognized oral care brands in India, maintaining leadership since the 1990s. In FY 2023, the company expanded into the face cleansing category, diversifying beyond oral care.
The company earns 96% of its revenue from the domestic market and 4% from exports. Its strong presence on e-commerce platforms has further boosted accessibility. Importantly, Colgate spends nearly 13% of its revenue on advertising, reinforcing its brand dominance.
It was also an official partner of IPL teams in the 2020 season, showcasing its marketing strength.
From a financial standpoint, Colgate Palmolive has a market cap of over $88 million (₹7,300 crores). Promoters hold a 51% stake, and the company maintains a low debt-to-equity ratio of just 4%, signaling financial stability.
Profit & Loss and Balance Sheet
The company has shown consistent revenue growth, crossing $7.23 billion in the last 12 months (₹6,000 crores). Net profit also reached an all-time high of $176 million (₹1,462 crores).
On the balance sheet side, equity stands at $3.25 million (₹27 crores), while reserves are $196 million (₹1,626 crores). Debt is minimal at $9.3 million (₹770 crores), and cash flow from operations is a healthy $14.5 million (₹1,200 crores).
Financial Snapshot
| Metric |
Value (USD) |
| Revenue (TTM) |
$7.23 billion |
| Net Profit |
$176 million |
| Equity |
$3.25 million |
| Reserves |
$196 million |
| Debt |
$9.3 million |
| Cash Flow (Ops) |
$14.5 million |
Shareholding Pattern
Promoters continue to hold a strong 51% stake in the company. Domestic Institutional Investors (DIIs) have been steadily increasing their holdings, moving from 5.59% in Sept 2023 to 7.84% in March 2025.
This steady increase in institutional interest signals growing confidence in the company’s fundamentals.
Shareholding Breakdown
| Shareholder |
Stake |
| Promoters |
51% |
| DIIs (Sept 2023) |
5.59% |
| DIIs (Mar 2025) |
7.84% |
Target Price Projections
Now, let’s calculate the target prices based on the chart patterns.
- For the long-term reverse head and shoulders pattern, the expected gain is about 22% from the resistance level and nearly 34% from the current price.
- For the short-term cup and handle pattern, the expected gain is about 15% from resistance and 18% from the current price.
This gives us two clear targets:
- $38.25 (₹3,176) – short-term
- $43.55 (₹3,615) – long-term
Target Price Table
| Pattern |
Gain from Resistance |
Gain from Current Price |
Target Price (USD) |
| Reverse Head & Shoulders |
22% |
34% |
$43.55 |
| Cup & Handle |
15% |
18% |
$38.25 |
Conclusion
Colgate Palmolive Limited shows strong fundamentals:
- Consistent revenue and profit growth
- Low debt and strong reserves
- Increasing institutional investor confidence
- Clear bullish chart patterns forming
From a technical perspective, both the reverse head and shoulders and the cup and handle patterns suggest potential upside. From a fundamental perspective, the company’s leadership position, strong financials, and brand dominance make it a resilient player in the FMCG sector.
Final Verdict: BUY
Based on the data, Colgate Palmolive Limited appears to be a buy for investors looking at both short-term and long-term opportunities. However, as always, investors should conduct their own due diligence before making any investment decision.
https://youtu.be/OQB4ln6CADg?si=jxm8vZcPZyoU3IYV
Intro
Hello everyone, I’m Kaneka. Today, I’ll be analyzing Colgate Palmolive Limited. We’ll look at both the fundamental analysis and the technical chart patterns of the stock.
Technical Analysis
On September 30, 2024, Colgate Palmolive hit its lifetime high of $46.50 (₹3,860). Since then, the stock has been on a downward trajectory, falling nearly 40% to a low of $27.90 (₹2,316). Currently, the stock is trading about 30% below its lifetime high.
One key level to watch is $35.55 (₹2,950), which has acted as a resistance zone multiple times. The stock tested this level in November 2024, December 2024, January 2025, and again in February 2025. Each time, it failed to break through convincingly.
This repeated testing has created a complex reverse head and shoulders pattern. The structure shows multiple shoulders forming, followed by a head, and potentially more shoulders. Alongside this, a cup and handle pattern has also emerged in the short term.
Both patterns suggest the possibility of an upward breakout if the resistance is crossed with strong volume.
Key Technical Levels
Fundamental Analysis
Colgate Palmolive is one of the most recognized oral care brands in India, maintaining leadership since the 1990s. In FY 2023, the company expanded into the face cleansing category, diversifying beyond oral care.
The company earns 96% of its revenue from the domestic market and 4% from exports. Its strong presence on e-commerce platforms has further boosted accessibility. Importantly, Colgate spends nearly 13% of its revenue on advertising, reinforcing its brand dominance.
It was also an official partner of IPL teams in the 2020 season, showcasing its marketing strength.
From a financial standpoint, Colgate Palmolive has a market cap of over $88 million (₹7,300 crores). Promoters hold a 51% stake, and the company maintains a low debt-to-equity ratio of just 4%, signaling financial stability.
Profit & Loss and Balance Sheet
The company has shown consistent revenue growth, crossing $7.23 billion in the last 12 months (₹6,000 crores). Net profit also reached an all-time high of $176 million (₹1,462 crores).
On the balance sheet side, equity stands at $3.25 million (₹27 crores), while reserves are $196 million (₹1,626 crores). Debt is minimal at $9.3 million (₹770 crores), and cash flow from operations is a healthy $14.5 million (₹1,200 crores).
Financial Snapshot
Shareholding Pattern
Promoters continue to hold a strong 51% stake in the company. Domestic Institutional Investors (DIIs) have been steadily increasing their holdings, moving from 5.59% in Sept 2023 to 7.84% in March 2025.
This steady increase in institutional interest signals growing confidence in the company’s fundamentals.
Shareholding Breakdown
Target Price Projections
Now, let’s calculate the target prices based on the chart patterns.
This gives us two clear targets:
Target Price Table
Conclusion
Colgate Palmolive Limited shows strong fundamentals:
From a technical perspective, both the reverse head and shoulders and the cup and handle patterns suggest potential upside. From a fundamental perspective, the company’s leadership position, strong financials, and brand dominance make it a resilient player in the FMCG sector.
Final Verdict: BUY
Based on the data, Colgate Palmolive Limited appears to be a buy for investors looking at both short-term and long-term opportunities. However, as always, investors should conduct their own due diligence before making any investment decision.
https://youtu.be/OQB4ln6CADg?si=jxm8vZcPZyoU3IYV