Godrej Consumer Products' medium-term aspiration includes the India business achieving high singledigit volume growth and mid-to-high 20s Ebitda margin. Indonesia is likely to achieve high single-digit volume growth with a mid-20s Ebitda margin. ROW aims to achieve mid-single-digit volume growth with a >15% Ebitda margin.
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Motilal Oswal Report
Godrej Consumer Products Ltd., under the leadership of Mr. Sudhir Sitapati, has added numerous growth levers over the last few years. The company has not only strengthened its core portfolio in India, but it has also added new segments.
Raymond Consumer Care Ltd. acquisition has further improved the company's presence in the personal care portfolio. Such initiatives led to better volume delivery for the company as compared to the peer group. FY25 has seen multiple headwinds, i.e., palm oil inflation, urban slowdown, etc., for the India business.
We expect a growth recovery in FY26, with macro-side drives also supporting the underlying growth. International business was hit by currency devaluation and the slump sale of the East African business.
With stability in Indonesia, we expect better performance in the remainder of FY26. We model an 11%, 13%, and 19% revenue, Ebitda, and adjusted profit after tax compound annual growth rate during FY25-28E.
We reiterate our Buy rating with a target price of Rs 1,450 (based on 50x Jun'27E earnings per share).
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