Goldman Sachs rates the stock as Buy, with a target price of Rs 1,100 per share.
Following Marico, FMCG giant Godrej Consumer Products issued a dismal quarterly report, causing the shares to fall 5% on October 6. As the FMCG business remained difficult throughout the quarter, the company predicts a mid-single-digit volume reduction with a low single-digit 3-year volume CAGR.
At 11:10 a.m. on the BSE, the stock was trading at Rs 850.20 a share, down 5.14 percent, while the Sensex was at 58,508.33, up 442.86 points or 0.76 percent.
In India, the business anticipates high single-digit revenue growth. “In Indonesia, we expect early double-digit constant currency sales declines due to waning hygiene performance following COVID-19 and a large hygiene comparator in the base.” “We expect sales growth in the high single digits (excluding hygiene),” the business stated in a stock market filing.
The impetus of odrej Consumer’s expansion in major markets such as Africa, the United States, and the Middle East (GAUM) has persisted. “We anticipate consistent currency sales growth in the low teens,” it stated.
In terms of profitability, the business expects an EBITDA drop in the mid-teens due to the consumption of high-cost materials, considerable upfront marketing efforts to promote category expansion, and a dismal performance in Indonesia.
Goldman Sachs, on the other hand, has a Buy call on the stock with a target price of Rs 1,100 a share. “We believe the company is a good candidate for a turnaround.” “India’s home care growth has improved, and Indonesia is showing early signs of recovery,” the report stated.
