Godrej Consumer Q1 Review - Steady India Recovery; Currency Impacts International Business: 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.Godrej Consumer Products Ltd. reported a 3% YoY decline in consolidated net revenue to Rs 33.3 billion (estimate: Rs 36.3 billion). In constant currency, revenue grew 11% YoY. India business clocked 9% YoY revenue growth (6% organic) with healthy volume growth of 8% YoY.In India, home care and personal care segments registered 8% and 6% YoY growth, respectively. Household insecticide category was stable and saw low single-digit volume growth, impacted by heatwaves. Personal-wash saw low single-digit volume growth but sustained market share gains. Hair color volume growth was flat due to fewer wedding dates. Raymond Consumer Care Ltd. revenue was Rs 1.53 billion.International performance was hit by unfavorable currency. Indonesia revenue was up 3% YoY (11% in CC) with healthy underlying volume growth of 7%. Godrej Africa, the U.S., and the Middle East revenue was hit by the devaluation of Naira and streamlining of trade inventory. GAUM organic revenue declined 25% (-10% in cc terms).Godrej Consumer posted strong volume growth in FY24 and aims to achieve high singledigit growth in FY25. The company keeps expanding its total addressable market and looks to gain share in rural markets and all channels. Under project Vistaara 2.0, the company plans to double its outlet coverage and triple its village coverage. A price hike in India business will improve its revenue trajectory in the coming quarters. We believe the growth uptrend in India business and an improving operating margin print will help Godrej Consumer sustain healthy earnings growth in FY25. We reiterate our Buy rating with a target price of Rs 1,700 (based on 60 times June-26E earnings per share). .Click on the attachment to read the full report:.Godrej Consumer Products Q1 Results: Profit Up 41%, Revenue Misses Estimates.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 Q1 Review - Steady India Recovery; Currency Impacts International Business: Motilal Oswal

The brokerage believes the growth uptrend in India business and an improving operating margin print will help the company sustain healthy earnings growth in FY25.

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Godrej Consumer Q1 Review - Steady India Recovery; Currency Impacts International Business: Motilal Oswal

The brokerage believes the growth uptrend in India business and an improving operating margin print will help the company sustain healthy earnings growth in FY25.

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