Colgate Palmolive share price gained 7.6 per cent on Friday after the GST Council’s recent action.
The stock opened nearly flat at ₹1,736.20 and climbed to an intraday high of ₹1,868.90 on the NSE, up 7.6 per cent. At 2:50 PM, Colgate Palmolive shares were trading at ₹1,845.90, up around 6.35 per cent. In comparison, the benchmark Nifty 50 was down 1.48 per cent at 22,560.20.
The Goods and Services Tax (GST) Council has approved a series of changes to input tax credit (ITC) rules, widening the range of business expenses eligible for credit and allowing refunds of accumulated credit on input services and plant and machinery.
The Council decided that businesses will be able to claim ITC on health and life insurance taken for employees. Credit will also be available on telecommunication towers and pipelines laid outside a factory, both of which are significant capital items for the sectors concerned.
ITC will also be allowed on free samples and on stock written off after expiry of its shelf life where the law requires the goods to be destroyed.
Sunny Agrawal, head, fundamental research at SBI Securities, noted that GST council allowing ITC in free samples and goods written off after expiry where destruction is required by law can augur well for FMCG cos like Colgate. “To add to this, 1QFY27 was one of the best quarters since 4QFY25. Moreover, the stock prices have corrected by 50 per cent since Jan 25 and are now trading at a comfortable TTM PE multiple of 37 times. With the festive season ahead of us, there is optimism that consumer staple companies are likely to report healthy earnings growth,” he said.
Colgate Palmolive Q1FY27
Colgate-Palmolive India reported a 7 per cent rise in net profit at ₹343.08 crore for June quarter FY27, helped by volume growth from its toothpaste portfolio and expansion in margins.
In the year-ago period, the profit was ₹320.62 crore, according to a regulatory filing from the oral hygiene product maker.
Sales were up 12 per cent to ₹1,590.56 crore in the June quarter of FY27. Total expenses were up 13.8 per cent to ₹1,160.57 crore. Total income, including other income, was ₹1,626.10 crore, up 12 per cent year-on-year. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.
