Godrej Consumer Products Q2 Results Review - Higher Commodity Cost A Dampener On Margin Front: Dolat Capital

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..Dolat Capital Report.Godrej Consumer Products Ltd.’s Q2 FY25 revenue missed our estimate, while Ebitda and adjusted profit after tax were in line. The company reported 7.0% volume growth in India business. However, high inflation in palm oil prices resulted in lower growth in personal care revenue and profitability. Home care reported 12% sales growth driven by double-digit growth in air fresheners and fabric care. Furthermore, household insecticide volumes grew in the mid-single digits. However, personal care posted a mere 3% revenue growth during the quarter. Though Q2 profitability was in line with the estimate, we have downward revised our FY25/26E EPS estimates by 8.7/9.1% at Rs 21.7/24.6 to factor in increase in palm oil prices and the anticipated decrease in personal care products demand. Further, we have introduced FY27E earnings per share at Rs 27.1. Valuing the stock at 46 times FY27E EPS we arrive at a target price of Rs 1,247. Considering rich valuation and anticipated margin pressure, we maintain our ‘Sell’ rating..Click on the attachment to read the full report:.ITC Q2 Results Review - Margins Fails To Impress; Reduce; Buy On Dips, Says Dolat Capital.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 Products Q2 Results Review - Higher Commodity Cost A Dampener On Margin Front: Dolat Capital

Considering rich valuation and anticipated margin pressure, the brokerage maintains its ‘Sell’ rating on the stock.

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Godrej Consumer Products Q2 Results Review - Higher Commodity Cost A Dampener On Margin Front: Dolat Capital

Considering rich valuation and anticipated margin pressure, the brokerage maintains its ‘Sell’ rating on the stock.

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