Macquarie has upgraded Godrej Consumer Products to outperform from its earlier stance, assigning a target price of ₹1,400 per share, driven by improving margin outlook and higher earnings estimates.
The brokerage highlighted market share gains in the high-margin insecticide segment as a key positive, noting that this portfolio continues to deliver strong profitability and pricing power. In addition, Macquarie expects a pickup in soap margins, supported by easing input cost pressures and a more favourable product mix.
Another important driver for the upgrade is the expected gradual recovery in Indonesia operations during FY27, which have weighed on consolidated performance in recent years. Macquarie believes that stabilising demand conditions and operational improvements should lead to a steadier contribution from the region going forward.
Reflecting these positives, the brokerage has raised its EPS estimates by 4–5%, prompting the upgrade in rating. Macquarie believes the earnings revision cycle is turning favourable as margin tailwinds re-emerge across key categories.
While competitive intensity in FMCG remains elevated, Macquarie sees Godrej Consumer as well positioned to benefit from margin recovery, portfolio strength and improving international performance, supporting a more constructive outlook on the stock.
Disclaimer: The views and recommendations above are those of Macquarie. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
