Colgate-Palmolive Shares: SEBI RA Sees A Strong Recovery If Stock Breaches This Key Support Level

The stock remains weak in the short term but is holding key support; a sustained move above its 14-day EMA could trigger a rebound towards ₹2,500, according to the analyst.

Colgate-Palmolive (India) has been in a steady downtrend since it reported a 6.5% decline in Q4 net profit and a 2% drop in revenue from operations on May 21. The stock has lost more than 10% of its value since then.

However, technical charts suggest that the stock could be showing early signs of recovery, according to SEBI-registered analyst Deepak Pal.

After managing to hold its key support zone between ₹2,340 and ₹2,350, Colgate-Palmolive stock is gradually attempting to retest its 14-day exponential moving average (EMA), which currently stands around ₹2,415–₹2,420.

The stock seems to have entered a corrective phase after a sustained weakness throughout June, dropping to a low of ₹2,346.50, Pal noted.

Despite this, the stock’s overall structure remains weak, the analyst said. Key indicators such as the moving average convergence/divergence (MACD), relative strength index (RSI), and Parabolic SAR continue to signal short-term bearishness.

However, the analyst noted signs of resilience, as the stock is holding above the key support zone of ₹2,340–₹2,350, with its current trading levels suggesting underlying buying interest.

At the time of writing, the stock was up 0.3% at ₹2,391.70.

Pal believes that a stronger recovery could be around the corner if the stock sustains above its 14-day EMA and breaks past the ₹2,450 mark.

For long-term investors, the current levels could prove to be a good accumulation zone with a stop loss suggested at ₹2,300. If current momentum holds, the stock may attempt to retest the ₹2,500 level within the month, he concluded.

Colgate-Palmolive maintains strong fundamentals, with minimal debt, a P/E ratio of 54–58, an ROE above 60%, and a dividend yield of approximately 2%.

However, its limited diversification, due to a heavy reliance on the oral care segment and strong competition from Dabur, Patanjali, and HUL, poses challenges.

According to reports, the company is looking to capitalize on India’s fast-changing consumer landscape by introducing new brands from its global portfolio.

Year-to-date (YTD), the stock has declined by 10%.

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