Buy Godrej Consumer; target of Rs 1400: Motilal Oswal

Motilal Oswal's research report on Godrej Consumer

Godrej Consumer (GCPL) reported a 3% YoY increase in consolidated net revenue to INR37.7b (est. INR37.5b). Constant currency organic revenue growth was at 2% YoY. Consolidated EBITDA declined 16% YoY (est. -13%). India’s revenue growth was at 3% YoY with a flat volume growth. Home Care delivered 4% revenue growth, impacted by the weak seasonal demand for HI, coupled with a slowdown pressure in urban. Air Fresheners and Fabric Care delivered strong double-digit volume growth. Personal Care portfolio posted a 2% YoY revenue growth. Personal Wash volume declined to a mid to high single digit, impacted by price hike/grammage reduction due to high PFAD prices. Hair Color volume grew in the mid-single digit. Deodorants and Sexual Wellness delivered double-digit volume growth.

Outlook

We reiterate our BUY rating with a TP of INR1,400 (based on 50x Dec’26E EPS).