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

buy

Anand Rathi's research report on Godrej Consumer Products

With the GST cut boosting soaps and men’s grooming range (~35% of its domestic range) and innovations (Godrej Fab, Godrej Ninja) scaling up well, Godrej Consumer Products is an attractive play on consumption recovery. We expect its international business to deliver high single-digit growth (Indonesia recovery, strong Africa, FTAs aiding Europe/UK), while its India volume growth should improve with the GST cut. Margin tailwinds from price increases (in soaps), premiumisation and cost efficiency measures should drive profit growth ahead of revenue, making it a compelling medium-term compounder. For the year we factor in persistent higher inflation in palm oil, GST rate cuts and a slightly weaker Indonesian performance, and lower our FY26e/FY27e EPS 8%/4% and introduce FY28e.

Outlook

We retain a Buy, with an unchanged 12-mth TP of Rs1,430, 50x Sep’27e EPS (earlier, 52x FY27e EPS).

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Godrej Consumer Products - 26 - 09 - 2025 - anand