Street Calls of the Week
Investing.com - JPMorgan has downgraded Colgate-Palmolive India (CLGT:IN) stock rating from Overweight to Neutral, while lowering its price target to INR2,400.00 from INR2,625.00.
The downgrade follows disappointing second-quarter results, with revenue coming in 1-1.5% below JPMorgan and street expectations. While operating margins performed better than feared, leading to in-line EBITDA, both revenue and EBITDA declined 6% year-over-year.
Colgate-Palmolive India’s performance underperformed peers during the quarter, which was partly affected by GST transition impact estimated at over 2%. Volume growth remains soft, with JPMorgan estimating a mid-single-digit decline.
The investment bank lowered its FY26/27E EPS estimates by approximately 4%, noting that while revenue growth will likely trend up gradually in the second half, it will remain among the weakest compared to peers.
Despite year-to-date share price underperformance, JPMorgan believes the risk-reward does not look favorable at 42x FY27E P/E, citing lack of significant positive catalysts and downward earnings revisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.