Godrej Consumer Products Limited (GCPL) saw its shares edge up by about 2% in morning trade after global brokerage firm Goldman Sachs initiated coverage on the FMCG major with a bullish buy call. The firm set a target price of ₹1,425 per share. As of 9:23 AM, the shares were trading 1.21% higher at Rs 1,158.30.
Goldman Sachs’ positive stance stems from the company’s renewed focus on unlocking high single-digit volume growth in its India business. According to the brokerage, GCPL is gaining traction in several fast-growing categories, particularly segments where consumer adoption is rising quickly and competition is intensifying.
One of the biggest contributors to this optimism is the steady growth in the home insecticides segment. Products based on electric formats and incense sticks continue to drive strong demand, and GCPL has been reinforcing its leadership in these sub-categories to match evolving consumer habits.
Goldman Sachs also pointed out that the company’s soaps portfolio, which has been under pressure for a few quarters, may be set for a recovery. The brokerage expects a mean reversion over the next year, hinting at a possible turnaround as the category stabilizes.
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