Colgate-Palmolive (India) Limited
Colgate-Palmolive (India) Limited Fundamental Analysis
Colgate-Palmolive (India) Limited (COLPAL.BO) shows moderate financial fundamentals with a PE ratio of 37.30, profit margin of 22.53%, and ROE of 80.86%. The company generates $58.9B in annual revenue with moderate year-over-year growth of 6.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 82.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze COLPAL.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCOLPAL.BO demonstrates superior asset utilization.
Valuation Score
WeakCOLPAL.BO trades at a premium to fair value.
Growth Score
ModerateCOLPAL.BO shows steady but slowing expansion.
Financial Health Score
ExcellentCOLPAL.BO maintains a strong and stable balance sheet.
Profitability Score
ExcellentCOLPAL.BO achieves industry-leading margins.
Key Financial Metrics
Is COLPAL.BO Expensive or Cheap?
P/E Ratio
COLPAL.BO trades at 37.30 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, COLPAL.BO's PEG of 454.56 indicates potential overvaluation.
Price to Book
The market values Colgate-Palmolive (India) Limited at 31.28 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.37 times EBITDA. This signals the market has high growth expectations.
How Well Does COLPAL.BO Make Money?
Net Profit Margin
For every $100 in sales, Colgate-Palmolive (India) Limited keeps $22.53 as profit after all expenses.
Operating Margin
Core operations generate 33.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $80.86 in profit for every $100 of shareholder equity.
ROA
Colgate-Palmolive (India) Limited generates $41.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Colgate-Palmolive (India) Limited produces operating cash flow of $9.97B, showing steady but balanced cash generation.
Free Cash Flow
Colgate-Palmolive (India) Limited generates strong free cash flow of $9.61B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $35.33 in free cash annually.
FCF Yield
COLPAL.BO converts 1.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.30
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
454.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
31.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.81
vs 25 benchmark
ROA
Return on assets percentage
0.42
vs 25 benchmark
ROCE
Return on capital employed
1.20
vs 25 benchmark
How COLPAL.BO Stacks Against Its Sector Peers
| Metric | COLPAL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.30 | 22.46 | Worse (Expensive) |
| ROE | 80.86% | 1263.00% | Weak |
| Net Margin | 22.53% | -5207.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 1.24 | Strong (Low Leverage) |
| Current Ratio | 1.29 | 2.47 | Neutral |
| ROA | 41.76% | -192326.00% (disorted) | Strong |
COLPAL.BO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Colgate-Palmolive (India) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
33.68%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
75.99%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
56.71%
Industry Style: Defensive, Dividend, Low Volatility
High Growth