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The market expects Colgate-Palmolive India to carry on much as it has.
At today’s share price, buyers are assuming Colgate-Palmolive India grows about 7% a year, forever. Over the last ten years it actually grew about 5% a year. The two are close, so the share price does not need the business to improve or to stumble. It needs it to keep doing roughly what it already does.
- How it is valued: Discounted cash flow.
- What the price assumes: 7% growth, against 5% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, Colgate-Palmolive India's revenue went from ₹4,328 crore to ₹6,035 crore — it compounded at about 4% a year over 8 years.
- Biggest swing factor: Volume growth. Main risk: Competition.
01Toothpaste in almost every home
Colgate-Palmolive (India), majority-owned by the US-based Colgate-Palmolive Company, is India's largest oral-care company, with brands such as Colgate Strong Teeth, MaxFresh, Visible White and Vedshakti, plus toothbrushes and Palmolive personal care.
It earns very high returns on capital and pays out most of its profit as dividends.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Colgate-Palmolive India, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Colgate-Palmolive India's record, in plain numbers
Between FY2018 and FY2026, Colgate-Palmolive India's revenue went from ₹4,328 crore to ₹6,035 crore — it compounded at about 4% a year over 8 years. Net profit grew from ₹673 crore to ₹1,325 crore, about 9% a year — faster than revenue, so margins widened. In FY2026 it kept 22.0% of revenue as net profit — against a low of 15.6% in FY2018 and a high of 23.8% in FY2025. Revenue slipped 0.1% in the latest year, well behind its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 4,328 | 673 | 15.6% |
| FY2019 | 4,462 | 776 | 17.4% |
| FY2020 | 4,525 | 816 | 18.0% |
| FY2021 | 4,841 | 1,035 | 21.4% |
| FY2022 | 5,100 | 1,078 | 21.1% |
| FY2023 | 5,226 | 1,047 | 20.0% |
| FY2024 | 5,680 | 1,324 | 23.3% |
| FY2025 | 6,040 | 1,437 | 23.8% |
| FY2026 | 6,035 | 1,325 | 22.0% |
04How Colgate-Palmolive India gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Colgate-Palmolive India's value
Volume growth
More people brushing more often drives sales.
Premiumisation
Higher-priced toothpastes lift margins.
Rural reach
Rural penetration adds growth.
Input costs
Packaging and raw materials affect margins.
06What could go wrong
- Competition. HUL, Dabur and Patanjali compete.
- Slow growth. Toothpaste is a mature category.
- Royalty. Payments to the parent affect profit.
07What the full Colgate India valuation shows
Sign in free to see the complete Colgate-Palmolive India valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Colgate's value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against Hindustan Unilever, Dabur and other staples
- ✓Downloadable report — the full write-up, yours to keep
08Questions people ask about Colgate-Palmolive India
How big is Colgate in India?
It sells close to half of India's toothpaste.
Who owns Colgate-Palmolive India?
The US-based Colgate-Palmolive Company holds the majority.
Why are Colgate's returns so high?
A strong brand and little need for capital.
Is Colgate-Palmolive India overvalued?
At ₹1,714 the market is pricing in roughly 7% sustained growth, against the ~5% its own record supports. That is more than it has delivered, so the price is justified only if the business can hold a rate it has not previously sustained.
What is the intrinsic value of Colgate-Palmolive India?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.