Hold Godrej Consumer Products; target of Rs 920: Emkay Global Financial

Emkay Global Financial's report on Godrej Consumer Products

At its analyst meet, GCPL MD & CEO Sudhir Sitapati presented a refreshed strategy. Management aims to achieve double-digit volume growth on the back of category development and penetration gains. GCPL will focus more on core, with fewer but bigger innovations, more global collaboration and higher investments for category development. However, it highlighted a cautious outlook in the short term due to unprecedented inflation and lower volume growth. Management's steps appear to be in the right direction, but given near-term pressure on earnings, we see limited upside potential.

Outlook

Maintain Hold with a TP of Rs920 (40x Dec-23 EPS).

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