Nice rounding bottom on colgate followed by a platform and ofc a breakout to all time highs on huge volumes.
What is happening in the toothpaste industry is quite interesting. The herbal segment - popularized by Patanjali - has increased the pricing power for all players in India. The margins have really improved for Colgate and all other players. The average price of a 100 gm herbal toothpaste (average of all 4 players Colgate, HUL, Dabur and Patanjali) is currently Rs 55. Colgate has priced its offering intelligently and is currently the cheapest player in the high end herbal segment and low end herbal segment with its Vedshakti brand so there room to catch up on prices. It launched its Cibaca Vedshakti brand at Rs 32 per 100 gm and it is now up to 45-46.
In general, the gap in both toothpaste consumption and toothpaste prices is pretty high between India and other nations. The other thing about colgate is its FA turnover which is slowly improving compared to its historical average. It may not hit its peaks though so it remains to be seen.
source : Edelweiss reports