Buy Godrej Consumer Products; target of Rs 1545: Sharekhan

Sharekhan is bullish on Godrej Consumer Products has recommended buy rating on the stock with a target price of Rs 1545 in its research report dated October 24, 2024.

Broker Research

October 25, 2024 / 13:41 IST

Buy

Sharekhan's research report on Godrej Consumer Products

Godrej Consumer Products Limited’s (GCPL’s) Q2FY2025 performance was in line with expectations with revenue rising ~2% y-o-y (high single-digit domestic volume growth), OPM rising by 70 bps y-o-y to 20.8% and adjusted PAT growing by 12% y-o-y. India business volume growth of 7% is much better as compared with some large FMCG peers in the current muted demand environment. International biz continues see margin expansion supporting overall profitability. H2 is expected to post double-digit revenue growth with price-led growth in soaps, while HI to post low double-digit growth, while liquid detergents to register strong scale up in sales. Margins to remain under pressure in the near term.

Outlook

The stock has corrected by 19% from its recent high and trades at 59x/47x/41x its FY25E/FY26E/FY27E earnings, respectively. We maintain a Buy with revised PT of Rs. 1,545.

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