Buy Godrej Consumer Products; target of Rs 1100: Sharekhan

Sharekhan is bullish on Godrej Consumer Products has recommended buy rating on the stock with a target price of Rs 1100 in its research report dated April 05, 2023.

Broker Research

April 06, 2023 / 16:45 IST

Buy

26 Aug, 2025 12:21

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Sharekhan's research report on Godrej Consumer Products

GCPL is expected to achieve double-digit revenue growth in Q4FY2023 with good recovery in the domestic household insecticide (HI) category and good recovery in the Indonesia business. Gross margin and OPM are expected to improve on y-o-y basis due to lower input prices (palm oil prices are down by 36% y-o-y); OPM is expected to be around 18.0-18.5% in Q4. Key medium-term growth drivers for double digit revenue and earnings growth are 1) recovery in the domestic HI business 2) Indonesia business growing consistently and 3) Africa business growing in double digits.

Outlook

We re-iterate our Buy rating on Godrej Consumer Products (GCPL) with revised PT of Rs. 1,100. Improving growth prospects in key markets and discounted valuations against peers at 44.1x/37.5x its FY24E/25E EPS makes it’s a good pick in the consumer goods space.

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