Manufacturing

Rise in Colgate shares as new MD and CEO joins; Check out Stocks and more

A nearly 2% rise in share price could be witnessed on Friday, a day after Prabha Narasimhan, former Hindustan Unilever Executive, was appointed as MD and CEO. 

A rise was witnessed in Colgate – Palmolive share price by nearly 2%, only a day after the company appointed Prabha Narasimhan as Managing Director and the Chief Executive Officer. 

Prabha Narasimhan is a former Hindustan Unilever (HUL) Executive and is the first outside MD of Colgate since 2010. 

“The nomination and remuneration committee (NRC) of the Colgate Palmolive board at its meeting noted that effective April 16 Raghavan has been promoted to president of enterprise oral care for Colgate Palmolive Company, the parent of Colgate-Palmolive (India) Ltd, and will be based out of its headquarters at New York.”, the Company stated in its Press Release on 10th March. 

The company was founded by William Colgate in 1806 to make starch, soap, and candles. In 1873, it started selling toothpaste in Jars. In 1896, Colgate ribbon dental cream was introduced in a collapsible tube. 

You can check out what Brokerages say about the stock and the company. 

JP Morgan has kept a neutral rating on Colgate-Palmolive with a target of Rs. 1580 per share. 

Calling the move unanticipated, it said that the focus areas for the new CEO are to accelerate revenue growth and drive a non-oral care portfolio too. 

The Brokerage House Nomura has a buy rating with a target price of Rs. 1700 on the stock. The company remains cautious of the company’s medium-term growth prospects. 

“Narasimhan could be a great hire for Colgate India to further scale-up aggression in oral care (especially claw back market share from Dabur and Patanjali), have a larger play in naturals, and scale-up Palmolive brand.”, said Brokerage Firm Edelweiss Securities. 

Edelweiss has a hold rating on the stock. 

(The stock recommendations in this story are by respective research analysts and brokerage firms. Business Outreach does not bear any responsibility for their investment advice.)

Submitted by – Vagish Yadav

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Business Outreach