Accumulate Godrej Consumer Products; target of Rs 1452: KR Choksey

KR Choksey recommended accumulate rating on Godrej Consumer Products with a target price of Rs 1452 in its research report dated October 28, 2024.

Broker Research

October 29, 2024 / 10:43 IST

accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

KR Choksey's research report on Godrej Consumer Products

For Q2FY25, the revenue increased 1.8% YoY (+10.0% QoQ) to INR 36,663 Mn, missed our estimate by 3.3%. EBITDA increased 5.3% YoY (+4.9% QoQ) to INR 7,617 Mn, in line with our estimate 0.1%. Adj. Net profit increased by 7.4% YoY (+5.6% QoQ) to INR 4,991 Mn, outperformed our estimate, mainly due to lower-than-expected interest expenses and depreciation. GCPL declared an interim dividend at INR 5.0/share for FY24-FY25. We lower our FY25E/FY26E estimates of Adj. EPS by 5.6%/5.7%, respectively, as we expect in 2HFY25E, domestic business profitability is to remain subdued due to a high base effect, inflationary pressures in palm oil, and delayed impact from price hikes in the soaps segment.

Outlook

We maintain our P/E multiple of 55.0x on FY26E EPS of INR 26.4 (earlier: INR 28.2), resulting in a target price of INR 1,452/share (earlier: INR 1,541). Given a 11.9% upside potential from the CMP, we maintain our “ACCUMULATE” rating on Godrej Consumer Products Ltd.

For all recommendations report, click here