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ICICI Securities Report
ICICI Securities largely maintain its earnings estimates, modelling revenue/Ebitda/PAT CAGRs of 12%/14%/18% over FY26–28E.
The brokerage maintains Add with an SoTP-based unchanged target price of Rs 1,200. At this target price, the stock would trade at 42x P/E multiple Mar'28E.
Valuation and view
Godrej Consumer enters FY27 from a position of structural strength, though near-term margins will likely be tested. While it achieved strong volume-led growth in Q4 FY26, blended raw material inflation of ~7–9% is expected to keep Q1/Q2 FY27 margins below normative levels.
However, ICICI Securities believes this inflationary environment creates a competitive advantage for Godrej Consumer – ongoing supply-chain disruptions in West Asia and rising input costs could severely squeeze unorganised players.
Godraj Consumer seems to be capitalising on this, by driving category development and calibrated price hikes, to protect absolute Ebitda.
The brokerage expects home care to be the primary growth engine in India, outpacing the currently muted personal care, supported by stabilising international geographies and strong innovation/launch pipeline.
Key downside risk is structural deceleration in India household insecticides; and rise in competitive intensity from smaller / unorganised players.
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