Buy Godrej Consumer Products; target of Rs 1400: Emkay Global Financial

BUY

Emkay Global Financial's research report on Godrej Consumer Products

We hosted Vishal Kedia, who heads Global Strategy at GCPL, at our recent conference Emkay Confluence 2025 with a group of investors, to gauge the company’s strategy ahead and assess its recent performance. GCPL is upbeat about its volume growth thrust, toward which it has started investing ahead of time in select markets. In India, it focuses on sustaining accelerated growth in Household Insecticides (HI) and new initiatives. Internationally, its focus is on volume-driven growth. As structural actions fructify, the company is confident of recouping margin to 24-25% in India (with palm oil prices easing in 2HFY26) and to 22-23% in Indonesia (in the medium term); in Africa, it expects margin to expand to 17-18% in the next 4-5 years.

Outlook

We maintain BUY on GCPL with Jun 26E TP of Rs1,400, on 50x P/E.

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