Colgate-Palmolive India touched its new 52-week high of Rs 153.80 today on sustained buying support from FIIs.

The scrip of the MNC oral care major  eased later in afternoon trades, but was still up by 12.11% at Rs 150.45 on the BSE. A substantial volume of over 3.31 lakh shares was recorded on the counter by 13:23 IST. In the last two months, the scrip has risen by 25.4% from its 52-week low of Rs 120 touched on 26 March 2003.

As per market buzz, foreign institutional investors (FIIs) are active on the Colgate-Palmolive India  counter,  accumulating the stock. However, the names of the FIIs were not known.

Meanwhile, analysts said FIIs are accumulating the stock on the reckoning that demand for the company's products will increase if there is a good monsoon this year.  The rural markets account for almost 60-65% of the revenues of fast moving consumer goods (FMCG) sector.

However, analysts said that Colgate-Palmolive India's top line is still feeling the pinch following a poor monsoon last year. Besides, unorganised players and new entrants have been eating into the company's market share.

Analysts said the slowdown in the FMCG sector in general, and the toothpaste category in particular, continues to pose a major challenge to Colgate-Palmolive India. Overall, analysts are pessimistic about the company's growth prospects.

However, they said the company could continue to show a moderate rise in bottom line due to its sustained efforts towards improving operating efficiency and lowering materials costs.

Meanwhile, for the fourth quarter ended 31 March 2003, analysts expect Colgate-Palmolive India to post a 6.5% to 16% fall in its net profit, in the range of Rs 18 crore and Rs 20 crore, on net sales somewhere between Rs 248 crore and Rs 253 crore, a fall of 5% to 7%.

For the third quarter ended 31 December 2002, it posted a 32.7% rise in net profit to Rs 21.1 crore, compared to Rs 15.9 crore in the corresponding period of the previous year. Total income decreased by 8.04% to Rs 274.5 crore from Rs 298.5 crore in DQ 2001.

Colgate-Palmolive India, a 51% subsidiary of Colgate-Palmolive, USA, is India's largest toothpaste maker by market share. In the Rs 1,000-crore toothpaste market, it commands around 50% share. Its product range includes tooth pastes, tooth powders and tooth brushes under the 'Colgate' brand. The company is also a leading producer of personal care products under the 'Palmolive' brand.