Goldman Sachs has reiterated its Buy rating on Godrej Consumer Products Ltd. (GCPL), setting a target price of ₹1,370, despite a weaker-than-expected Q3FY25 performance. The brokerage sees the third quarter as an aberration in an otherwise strong volume growth trajectory.
Goldman Sachs expects GCPL to be the fastest-growing FMCG company in its coverage for FY26, driven by key business segments:
- Household Insecticides (HI): The company’s new formulation is gaining traction post its launch six months ago, leading to structural market share gains.
- Soaps Business: Pricing adjustments are expected to offset palm oil inflation, leading to margin recovery.
With a correction in GCPL’s valuations, the brokerage believes that the risk-reward scenario is highly favorable, making it a compelling investment opportunity.
