Buy Godrej Consumer Products; target of Rs 1237: Geojit Financial Services

Geojit Financial Services is bullish on Godrej Consumer Products has recommended buy rating on the stock with a target price of Rs 1237 in its research report dated January 31, 2025.

Broker Research

February 03, 2025 / 11:51 IST

Buy

26 Aug, 2025 12:21

Volume

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Geojit Financial Services research report on Godrej Consumer Products

Godrej Consumer Products Ltd (GCPL) is one of India’s leading home-grown household and personal care companies. It also has a presence in Indonesia, Africa, the United States (US) and the Middle East, among others. In Q3FY25, consolidated revenue increased 3.0% YoY to Rs. 3,768cr mainly owing to flat growth in underlying volume. Revenue from India increased 2.6% YoY to Rs. 2,262cr led by growth in the home care and personal care segments. The home care segment grew 4.0% YoY, driven by the strong performance of Goodknight Agarbatti, which gained significant market share in the incense sticks segment. However, lower demand for household insecticides and a slowdown in urban consumption affected premium formats. Personal care grew 2.0% YoY, despite personal wash volumes declining in the midto-high single digits, while hair colour volumes grew in the mid-single digits. EBITDA fell 16.4% YoY owing to a 7.3% YoY increase in employee benefit expenses, 6.1% YoY rise in selling, marketing and distribution expenses and 19.7% YoY growth in other expenses.

Outlook

Therefore, we upgrade our rating to BUY from HOLD on the stock with a rolled forward target price of Rs. 1,237 using a target multiple of 45x P/E on FY27E.

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