Buy Godrej Consumer Products; target of Rs 1225: Emkay Global Financial

Emkay Global Financial is bullish on Godrej Consumer Products has recommended buy rating on the stock with a target price of Rs 1225 in its research report dated June 30, 2023.

Broker Research

June 30, 2023 / 17:33 IST

Buy

26 Aug, 2025 12:21

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Emkay Global Financial's research report on Godrej Consumer Products

We initiate coverage on Godrej Consumer Products (GCPL) with a BUY and Jun24E TP of Rs1,225/sh (on 46x its Jun-25E EPS; ~10% premium to its historical 5-year average forward P/E). With a revamped management team, GCPL targets resolving business issues and make businesses structurally sound. While domestically Company’s thrust is on demand generation, its focus on the international front is to enhance supplies. We see efficiency benefits being redeployed for higher growth, given GCPL’s improved margin profile. Company has set medium-term aspirations of low double-digit volume growth which, in our view, require a conducive setting. We build-in 12% sales CAGR and 21% EPS CAGR over FY23-26E. Key risks to our call: weakness in HI, heightened competition, raw-material inflation, and weak global macros.

Outlook

We initiate coverage on GCPL with a BUY recommendation and Jun-24E TP of Rs1,225/share, based on 46x P/E, which is at a ~10%/~20% premium to its last 5-/10-year historical average forward P/E, given the better earnings visibility.

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