Colgate-Palmolive shares tumble 4% despite healthy Q4 results

Despite Colgate-Palmolive reporting a 20% increase in net profit to Rs 379.8 crore for the March quarter and a rise in net sales, its shares dropped 4% on BSE.

Shares of Colgate-Palmolive dropped 4% today on BSE to the day’s low of Rs 2,703.40 even as the company reported a 20% jump in its net profit to Rs 379.8 crore in the March quarter.

The company's net sales in the quarter under review increased to Rs 1,480.7 crore from Rs 1,341.7 crore in the same period a year ago.

Rural markets continued to exhibit positive signs of demand recovery, outpacing urban markets while the modern trade and e-commerce platforms delivered strong performance.

The company also declared a one-time special interim dividend of Rs 10 per share for FY24. The total dividend stood at Rs 58 per share for the financial year.

largely met Motilal Oswal’s earnings estimates for the fourth quarter of FY24. The sales grew 10% YoY to Rs 1,490 crore as against the brokerage’s estimate of Rs 1,500 crore, while the gross margins increased 240bp YoY to 69.3% as against the estimate of 70.6%. The company’s EBITDA grew 18% YoY to Rs 530 crore vs an estimate of Rs 510 crore. Adjusted PAT grew 20% YoY to Rs 380 crore while the brokerage estimated the same at Rs 370 crore.

The shares of Colgate-Palmolive have shown healthy gains of 62% in the last one year, while in the last 6 months, the company’s shares have increased by 27%.

Technically, the stock is well placed, trading above all its significant exponential moving averages with a mid-range on the RSI near 56 mark.

The stock trading above the 70 mark is considered to be in the overbought zone, while below 30 is considered oversold.

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Source: Stocks-Markets-Economic Times