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COLGATE PALMOLIVE: 50% RETRACEMENT

By CKN Staff

June 11, 2025

Right from the time of its IPO (way back in the late 1970s under FERA dilution), the stock has always been an aspirational one. Long term holders simply don’t sell this one, given that it declares consistent dividends and gives bonus issues and their original costs are deep in the negative.

But for those that have only been watching the prices rise, could the recent fall- 50% of the recent rise from 2023- be offering an opportunity to own this aspirational stock?

On the charts we see prices having dropped 50% of the rise, drawn back to a former tight consolidation area of 2024 and near support Gann angle lines. It is mainly concerns about volume growth on account of a challenging demand environment at the mass end of the market that is said to be the main cause for this decline. While Colgate has launched some premium products, the core brand seems to be faltering a bit.

It is difficult to dislodge Colgate from the leadership status and with valuations now drawn down to around 45x levels (this too has fallen by 50% since 2019-20), the stock is trading at some decent levels for those that want to acquire it.

 

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