Shares of Godrej Consumer Products surged 8% to its fresh all-time high of Rs 1,349.65 on BSE in Tuesday\’s early trade even after reporting a consolidated net loss of Rs 1,893 crore for the quarter ended March 31, 2024.
The revenue from operations stood at Rs 3,365.11 crore for the reported quarter which rose by 6% while Q4 FY 2024 consolidated volume grew 12% with the India business volume growing 15%, and Indonesia volume growing 12%.
Brokerage firms have a positive view on the FMCG stock. Here’s what they say:
JP Morgan
JP Morgan states that Godrej CP’s Indian volume growth remains best in class in Q4 while overseas margins did better than expected with solid revenue and margin delivery from Indonesia.
The brokerage maintained its ‘overweight’ rating with a target price of Rs 1,300.
Jefferies
As Q4 estimates for Godrej Consumer Products were above Jefferies’ estimates with 18% LFL EBITDA growth, the brokerage firm remains optimistic as they found industry-leading volume growth, strong traction in Indonesia and good EBITDA delivery to be key positives for the company.
Jefferies maintained a ‘buy’ rating on the stock with a target price of Rs 1,520.
Nuvama
Nuvams mentions that as in in-line showing, the disruptive innovation continues for GCPL. The Q4 revenue was in line with Nuvama’s estimates. Indonesia continued to do well with double-digit growth YoY in value/volume terms. The brokerage firm expects the stock to see some pressure in the near-term due to huge one-offs.
With this, Nuvama stated that they maintain a ‘buy’ view on the stock, however, a target price would be revisited post the analyst meeting.
Emkay Global
“Q4FY24 results for GCPL beat our expectations, with inline sales growth of 6% albeit better margin at 22.3% (up by 230bps YoY) driving the EBITDA (up 18% YoY) beat of 6%; the lower tax rate (at 17%) drove the adj. PAT (up 22% YoY) beat 15%. Domestic business performance missed expectations, with sales and EBITDA growing 12% each (OPM at 26.6% stood flat YoY),” said the brokerage firms.
Emkay Global maintained their ‘add’ rating with a target price of Rs 1,350, which will be revisited post the investor meet due later today.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
