Godrej Consumer - Addressing Portfolio Gaps; Margin Headroom Adequate: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We note that under Sudhir Sitapati's leadership, there has been a noticeable shift in approach at Godrej Consumer Products Ltd. over the last 12-18 months. The company, under his astute guidance, has adopted a growth-centric strategy, including pursuing inorganic growth, cross-selling, entering new categories, expanding the total addressable market for existing products, and more. Additionally, there has been an increase in reinvestment, particularly in marketing spending, and the company has made tough decisions such as improving inventory management for RCCL & Indonesia and closing the non-core businesses..In an environment where demand recovery is being delayed, Godrej Consumer’s internal initiatives are expected to outperform those of its competitors. The inclusion of incense sticks and liquid detergent not only expands the target market but also showcases Godrej Consumer's backend competence and growth-oriented approach. Indonesia and Godrej Africa, USA, Middle East still offer enough headroom for Ebitda margin expansion in the coming years (details shared in specific sections). With domestic business already outperforming in volume growth, improvements in demand should further lead to a better growth trajectory for Godrej Consumer. The stock is trading at 54 times and 47 times price/earning on FY25E and FY26E, respectively. We believe earnings surprises will keep the stock in flavor. Reiterate 'Buy' with a target price of Rs 1,500..Click on the attachment to read the full report:.Mutual Funds Will Be Asked To ‘Stress Test’ Small And Mid-Cap Schemes — NDTV Profit Exclusive.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Godrej Consumer - Addressing Portfolio Gaps; Margin Headroom Adequate: Motilal Oswal

Godrej Consumer is consistently working to expand the total addressable market for its India business through product innovation to drive customer engagement

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