Buy Godrej Consumer Products; target of Rs 1430: Anand Rathi

Buy

Anand Rathi's research report on Godrej Consumer Products

With 6% volume growth (4% in India business) and 21.1% EBITDA margin (Street’s estimate at 20.4%), Godrej Consumer posted broadly in-line Q4 results. The company’s focus on developing categories/businesses and innovation drove launches with huge potential: a liquid detergent (Fab), RNF molecule-based anti-mosquito repellents and its entry into pet care. Management maintained its focus on volume-led growth and guided for 5- 6% volume expansion in FY26, with double-digit EBITDA growth. The new guidance, however, was a tad underwhelming; we, thus, lower our FY26e/27e revenue by 5% each and EPS by 6%/7%.

Outlook

We retain a Buy, with a lower 12-mth TP of Rs1,430 (earlier Rs1,485), 52x FY27e EPS (50x FY27e EPS), due to the weaker FY26 guidance.

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Godrej Consumer Products - 09052025 - anand