Analysts cheer Colgate's growth plans and focused product innovation

Focus on modern trade and market share gains has led brokerages to hike their target price estimate for the stock

At least 10 brokerages hiked their target price estimate (average Rs 1,670) for Colgate-Palmolive (India) over the weekend as the toothpaste leader highlighted its efforts to drive profitable growth.

The latter has come as a pleasant surprise given that Colgate's volumes, after growing between 9 per cent and 14 per cent during FY08-FY14, have seen a sharp deceleration to between -1.5 per cent and 5.5 per cent during FY15-FY20.

A key reason for the high volume growth rates of FY08-FY14 had been the company’s focus on increasing penetration rates, which surged to as high as 88 per cent for Colgate's brands. The