Godrej Consumer Products Ltd. share price target

GCPL missed on sales and EBITDA but business is commoditised and volume growth was in line with high single digits guidance

Godrej Consumer Products Limited’s (GCPL’s) Q1FY2025 numbers were below our expectation as currency depreciation hit consolidated sales growth. Revenues decreased by 3% y-o-y; OPM expanded by 203 bps to 21.8%; PAT grew by 14% y-o-y.

IIP: IIP growth eases in Mar'24. SBIN: Continued strong performance across segment. GCPL: Strong volume-led growth across markets. POLYCAB: Strong quarter, strong outlook. ORIENTEL: Strong revenue; profitability falters

Godrej Consumer (GCPL) reported a 6% YoY consolidated net revenue
growth to INR33.8b (exactly in line); constant currency (CC) growth was 30%
YoY in 4QFY24. The India business clocked 12% YoY revenue growth (5%
organic) with a volume growth of 15% YoY (7% organic).

GCPL’s Q4FY2024 numbers were above our as well as street expectations due to better-than-expected OPM of 22.5%, leading to adjusted PAT growth of 22%; it achieved industry-leading organic volume growth of 9% (India business 7%).

GCPL: Consistent volume growth; cut to HOLD post rally. JSP: Valuations overdone; downgrade to HOLD. ACC: Strong margins; cut to HOLD on full valuations. Bonds Wrap: Fortnightly review. Currency Outlook: Fortnightly forex review. VGRD: In-line quarter. ORIENTEL: Slow quarter; Hyderabad plant to spur growth. SOMC: Lacklustre demand dulls performance. MTLM: Strong performance on fast ramp-up of MDF plant. SRCM: Healthy quarter, expensive valuations