With 2% y/y consolidated revenue growth (vs. the Street’s estimated 1%) and Rs7.6bn EBITDA (Rs7.5bn), Godrej Consumer’s Q2 was broadly in line with expectations. The 7% domestic volume growth despite urban slowdown and adverse weather and 7% volume growth in Indonesia were encouraging. Management spoke of steady progress in launches (with huge potential): liquid detergent (Fab) and a new-molecule-based antimosquito range (GoodKnight agarbatti, LV). It continues to focus on more volumes, international margins and consistently growing cashflow. We introduce FY27e and slightly lower, 3%/2%, our FY25e/FY26e EPS to factor in higher palm oil prices and the tax rate for FY25.
OutlookWe retain a Buy and 12-mth Rs1,670 TP, 52x FY27e EPS (60x FY26e EPS earlier), attributing the multiple to potential from launches/businesses.
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