India's Godrej Consumer rises on Q2 beat, but analysts cautious of near-term stress

Godrej Consumer Products

25/10/2024 06:06

** Shares of Godrej Consumer Products  GOCP.NS  rise 3% to
1,293.40 rupees
    ** Co reported Q2 net profit of 4.91 bln rupees, beating
analysts' estimates of 4.86 bln rupees, as per data compiled by
LSEG
    ** However, co says margin pressure likely to continue for
remainder of the year in its personal care category
    ** Jefferies says GOCP continues to lead peers on vol growth
at 7% YoY despite soaps seeing flattish volumes in India, which
is commendable in the context of urban slowdown
    ** Maintains "buy," but cuts FY25-27E EPS estimates by 4-8%
to factor margin weakness in India
    ** H2 likely to sustain healthy growth momentum in
profitability, EBITDA; factoring in near-term margin stress, cut
earnings by 4%-7% over FY25-27E; maintain "add" - Emkay Global
    ** Mean rating of 32 brokerages is a "buy"; median PT is
1,546.5 rupees - LSEG data

 (Reporting by Meenakshi Maidas in Bengaluru)
 ((meenakshi.maidas@thomsonreuters.com;))