Shares of major oral care products company Colgate-Palmolive (India) fell more than 2% on December 14 as analysts remained wary of the company’s premiumisation plans announced at its annual investor day.

The stock was quoted Rs 1,607 per share on the National Stock Exchange at 10 am. It has returned 10% this year, compared with 22% for Nifty FMCG over the same period.

According to Kantar World Panel, people in urban households replace their toothbrushes every six months, while those in rural areas change them every 15 months.

CEO Prabha Narasimhan also said that in rural areas, 55% of the population does not brush their teeth daily, while in urban areas, only about 20% of households brush their teeth twice daily.

Colgate-Palmolive believes it can change those numbers and boost sales. Citi analysts believe that driving change in consumer habits requires ongoing investment, and results may take time. It has a sell rating on the stock at Rs 1,650 per share.

“Focus on volume growth and premiumisation at the same time can be a daunting task,” the brokerage said.

Electric toothbrushes and teeth whitening products are its focus areas for premiumisation. The company also plans to build a business-to-business platform called DentistFirst.

Additionally, it announced its foray into the children’s toothpaste category, which includes teething and baby teething products.

Analysts at Motilal Oswal Financial Services said: “Colgate’s volume growth has been elusive for years as market share has been lost to herbal players. Premiumization in general trade and growth in personal care (Palmolive) has been rather slow.”

The company did not state financial goals as part of its investor day. MOFS has a Neutral rating on the stock with a target price of Rs 1,620 per share. Foreign brokerage Nomura also has a Neutral rating with a target of Rs 1,600.