Colgate-Palmolive (India) Limited

COLPAL.BO•household-personal-products

Current Price

2,398.65INR

per share

Fair Value

830.66INR

Overvalued

188.8%

Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.59%, higher than industry average of 6.57%.

Growth Trajectory

Profitability

In the growth phase company makes 28.37% profit on every dollar of sales, higher than industry average of 16.02%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.23% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)

Return on Invested Capital (%)

Financial Health Overview

Enterprise Value

219.85B INR

Equity Value

225.92B INR

FCF Yield

24.95%

Average ROIC

88.09%

Cost of Capital

7.83%

P/E Ratio

46.96x

Financial Metric	Most Recent 12 months (INR)	Previous Year (INR)
Revenues	59.34B INR	56.44B INR
Operating Income or EBIT	18.77B INR	18.06B INR
Interest Expense	43.60M INR	50M INR
Book Value Of Equity	16.64B INR	18.74B INR
Book Value Of Debt	608.40M INR	717.50M INR
Cash and Marketable Securities	6.68B INR	8.89B INR
Number of Shares Outstanding	271.99M	--
Minority interests	0 INR	0 INR
Current Stock Price	2398.65 INR	--
Effective Tax Rate	26.00%	--
Marginal Tax Rate	30.00%	--

Performance vs Industry

Revenue Growth

-1.44%

5.13%Company

6.57%Industry

Below Industry

Operating Margin

+15.61%

31.63%Company

16.02%Industry

Above Industry

Colgate-Palmolive (India) Limited demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate

4.65%

Cost of Capital

8.88%

Return on Capital

8.87%

Reinvestment Rate

52.36%

Terminal value represents 53% of total enterprise value, based on 4.65% perpetual growth and 8.88% discount rate.

Equity Value Breakdown

Component	Value	Type
Present Value (Terminal Value)	117.62B INR	Add
Present Value (Cash Flow Over Next 10 Years)	102.23B INR	Add
Value of Operating Assets	219.85B INR	Sub-total
Debt	608.40M INR	Subtract
Minority Interests	—	Subtract
Cash	6.68B INR	Add
Value of Equity	225.92B INR	Sub-total
Number of Shares	271.99M shares	Divisor
Estimated Value per Share (Fair Value)	830.66 INR	Total
Current Market Price	2.39K INR	Reference

Financial Projections

Total FCF Present Value

102.23B INR

Avg Revenue Growth

6.05%

Avg Operating Margin

27.64%

Avg ROIC

88.09%

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal Year
REVENUE
Revenue	64.40B INR	69.29B INR	74.55B INR	80.21B INR	86.30B INR	92.34B INR	98.26B INR	103.99B INR	109.44B INR	114.53B INR	119.85B INR
Growth Rate	8.54%	7.58%	7.58%	7.58%	7.58%	7.00%	6.41%	5.82%	5.23%	4.65%	4.65%
PROFITABILITY
Operating Income	20.37B INR	20.41B INR	21.15B INR	21.88B INR	22.61B INR	24.19B INR	25.74B INR	27.24B INR	28.67B INR	30.00B INR	31.40B INR
Operating Margin	31.63%	29.45%	28.37%	27.28%	26.20%	26.20%	26.20%	26.20%	26.20%	26.20%	26.20%
EBIT (1-tax)	15.07B INR	15.10B INR	15.65B INR	16.19B INR	16.73B INR	17.71B INR	18.64B INR	19.50B INR	20.30B INR	21.00B INR	21.98B INR
CASH FLOW
Reinvestment	1.96B INR	2.11B INR	2.27B INR	2.44B INR	2.42B INR	2.67B INR	2.58B INR	2.45B INR	2.29B INR	2.40B INR	11.51B INR
Free Cash Flow	13.11B INR	12.99B INR	13.38B INR	13.75B INR	14.30B INR	15.03B INR	16.05B INR	17.05B INR	18.00B INR	18.60B INR	10.47B INR
Terminal Value	--	--	--	--	--	--	--	--	--	--	247.54B INR
Present Value	12.23B INR	11.30B INR	10.85B INR	10.40B INR	10.09B INR	9.86B INR	9.75B INR	9.57B INR	9.31B INR	8.83B INR	—
EFFICIENCY
ROIC	142.60%	120.53%	106.89%	95.76%	86.44%	81.31%	76.23%	72.16%	68.84%	66.08%	8.87%
Cost of Capital	7.23%	7.23%	7.23%	7.23%	7.23%	7.56%	7.89%	8.22%	8.55%	8.87%	8.88%
Sales/Capital	2.49x	2.49x	2.49x	2.49x	2.49x	2.21x	2.21x	2.21x	2.21x	2.21x	—

Profitability & Efficiency

Operating Margin (%)

ROIC (%)

Value Creation Analysis

ROIC (%)

Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (₹B)

Reinvestment (₹B)