Goldman Sachs (GS) has reiterated a ‘Buy’ rating on Godrej Consumer Products with a target price of ₹1,370/share, indicating a potential upside of 22.9% from the current market price (CMP) of ₹1,115.00.
The company appears to have moved past the peak of cyclical headwinds stemming from elevated palm oil prices and adverse seasonality, which impacted Q3 performance. A recovery is anticipated starting Q4, as the sharp spike in palm oil prices that hurt soap margins and volumes is expected to subside.
Adverse seasonality in the home insecticides category led to a volume decline, while the Q3 profit warning was viewed as a negative surprise. However, Godrej Consumer is poised to reclaim its position as one of the fastest-growing FMCG companies by FY26.
Disclaimer: The above analysis is based on inputs provided and is for informational purposes only. It does not constitute financial advice. Readers are advised to consult their financial advisors before making any investment decisions.
