Street View: Inventory correction, rising input costs to weigh on India's Godrej Consumer
BUZZ-Street View: Inventory correction, rising input costs to weigh on India's Godrej Consumer ** Shares of Cinthol soap-maker Godrej Consumer Products GOCP.NS down 4.1% at 869.75 rupees--lowest level in over three years
** Undertakes inventory correction of 1.5 billion rupees ($15.79 million) in India over next three quarters
** Reiterates FY27 guidance
INVENTORY CORRECTION, RAW MATERIAL COSTS TO WEIGH
** Investments, growth initiatives should strengthen long-term growth but inventory correction, sustained palm oil inflation could constrain near-term performance--Investec ("Hold", TP reduced to 952 rupees from 992 rupees)
** Analysts at Macquarie ("Outperform", TP at 1,100 rupees) like the unchanged FY27 growth outlook but find drag on India growth from reduction of inventory concerning
** While co provided long-term guidance, believe investors will track qtrly performance given under performance vs previous long-term guidance from Dec 2021--CLSA ("Underperform", reduces TP to 772 rupees from 743 rupees)
** Investments, inventory correction necessary to strengthen long-term growth but see these weighing on near-term growth trajectory, profitability--Citi ("Buy", TP at 1,350 rupees)
($1 = 94.9700 Indian rupees)
(Reporting by Saikeerthi in Bengaluru)
((Saikeerthi@thomsonreuters.com; (+91) 8296756080))
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