Accumulate Godrej Consumer Products; target of Rs 1275: Deven Choksey

Accumulate

Deven Choksey's research report on Godrej Consumer Products

Godrej Consumer Products’ consolidated revenue grew by 4.3% YoY (+4.5% QoQ) to INR 38,251 Mn, which is below our estimates (-3.0%). Underlying volume growth stood at 3% YoY for the consolidated business and 3% YoY for the domestic business, supported by continued traction in Home Care and Hair Color portfolios. Growth across Africa (including Strength of Nature) remained strong at ~25% YoY, while Indonesia posted a decline of ~7% YoY due to macro headwinds and competitive intensity. The India business grew by ~4% YoY, supported by a doubledigit performance in Household Insecticides and continued recovery in Air Fresheners and Hair Color.

Outlook

We have rolled forward our valuation basis to Sept’27 estimates. We value Godrej Consumers at 46.0x Sept-27 EPS, implying a target price of INR 1,275. We reiterate our “ACCUMULATE” rating on the stock.

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Godrej Consumer Products - 11112025 - deven