India: Colgate's first-quarter sales volume grew strongly, and its stock price hit a record high.

Colgate's growth in the rural market surpassed the urban market for the second consecutive quarter. Colgate's toothpaste portfolio achieved double-digit growth due to high volume growth in the single-digit range, and surpassed the mid-single-digit growth of industry rival Hindustan Unilever, which was driven by pricing.

Colgate-Palmolive's stock price rose 5.5% when trading began on 7/30 due to strong financial results for the April-6 fiscal year, and recorded a record high of 3,390 rupees. The brokers particularly appreciated the increase in unit sales exceeding the company's expectations, which was driven by a recovery in demand in rural areas.

Broker Nomura Securities continues to take a positive view of Colgate's 6-7% increase in sales volume in the first quarter of fiscal year 25.

Nuvama Institutional Equities pointed out that Colgate is gradually benefiting from rural recovery, and the company's rural market growth has surpassed the urban market for the second time in a row. Against the backdrop of a strong recovery in rural areas, Colgate anticipates balanced growth in fiscal year 25 compared to price-driven growth in fiscal year 24. Similarly, while maintaining the “buy” rating, the securities company raised its stock price target value by 13% or more to 3,745 rupees.

Jeffries is also impressed by the recovery in growth in rural markets, driven by Colgate's strong execution. Jeffries also revised FMCG companies' earnings forecasts upward for 3 consecutive quarters since Colgate's financial results for the first quarter exceeded expectations.