Godrej Consumer Products share price moved higher in early trade after global brokerage Macquarie upgraded the stock, citing an improving margin outlook and stronger earnings visibility. The stock was trading 0.88% higher at ₹1,243.10 around 9:25 AM.
Macquarie has upgraded Godrej Consumer Products to Outperform from its earlier rating and raised the target price to ₹1,400 per share. The upgrade is driven by expectations of margin expansion across key categories and a 4–5% increase in earnings per share estimates, indicating a favourable turn in the earnings revision cycle.
According to the brokerage, one of the key positives is the company’s continued market share gains in the high-margin insecticide segment. This portfolio remains a strong profitability driver, supported by pricing power and steady demand, helping offset competitive pressures in other FMCG categories.
Macquarie also expects an improvement in soap margins, aided by easing input cost pressures and a more favourable product mix. These factors are likely to support operating leverage and contribute to margin recovery over the coming quarters.
Another important factor behind the upgrade is the anticipated gradual recovery in Indonesia operations during FY27. The region has weighed on consolidated performance in recent years, but stabilising demand conditions and operational improvements are expected to lead to a more consistent contribution going forward.
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