Global brokerage Goldman Sachs has initiated a buy call on Godrej Consumer Products Limited (GCPL) with a target price of Rs 1,425 per share, implying an upside potential of approximately 25 per cent from the current market price of Rs 1,139.50.
The brokerage is betting on the FMCG major’s ambition to deliver high single-digit volume growth in India, driven by its expanding presence in high-growth categories that are scaling rapidly.
Goldman Sachs noted that the home insecticides segment, a key revenue driver for GCPL, continues to witness growth propelled by electrics and incense sticks formats. The company has been strengthening its position in these sub-categories to capture evolving consumer preferences.
On the soaps front, the brokerage expects a mean reversion over the next 12 months, signalling a potential turnaround in a category that has faced headwinds in recent quarters.
Importantly, Goldman Sachs highlighted that India’s margin recovery is returning to normal levels, which should support profitability improvements going forward. The combination of volume-led growth and margin expansion positions GCPL favourably for the medium term.
Shares of Godrej Consumer Products closed at Rs 1,139.50 on the exchanges.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Stock market investments are subject to market risks. Readers are advised to consult their financial advisors before making any investment decisions. The views expressed by the brokerage are their own and do not represent the opinions of this publication.
