CLSA has maintained its Underperform rating on Godrej Consumer Products Ltd (GCPL), assigning a target price of ₹1,062, which implies a downside from the current market price of ₹1,198.00. The brokerage cited a slightly weaker-than-expected Q1 update and raised concerns about elevated investor expectations for FY26.
GCPL indicated high single-digit sales growth for its standalone business during the quarter, with underlying volume growth in the mid-single digits. While consolidated rupee revenue growth is expected to be in the double digits, CLSA noted this is broadly in line with its estimate of 11%.
However, the firm pointed out that the standalone performance came in marginally below its 10% growth forecast. CLSA remains cautious, stating that investor hopes for mid-teen value growth in FY26 could be overly optimistic given the current demand environment.
Disclaimer: The views expressed above are those of CLSA and do not constitute investment advice. This article is for informational purposes only.