Buy Godrej Consumer; target of Rs 1400: Motilal Oswal

Motilal Oswal's research report on Godrej Consumer

Godrej Consumer’s (GCPL) consolidated revenue rose 4% YoY to INR38.3b (est. INR39.3b), while volume growth stood at 3%. EBITDA declined 4% YoY (est. -5%) due to soft margins for the Indian and Indonesian operations. India’s revenue rose 4%, while volume grew 3%. The GST transition’s impact was 3-4%. Excluding soaps, volume growth was in double digits. Home Care delivered 6% revenue growth. GCPL entered the Toilet Cleaner space (INR30b market, growing at a strong double digit) with the launch of Godrej Spic Toilet Cleaner in October in South India.

Outlook

Given the growth-centric focus, we remain constructive on GCPL and reiterate our BUY rating with a TP of INR1,400 (based on 50x Sep’27E EPS).