Godrej Consumer faces highest input cost impact among FMCG majors

Turnaround hopes and attractive valuations, however, keep the Street positive on the stock

In just over a month, fast moving consumer goods (FMCG) major Godrej Consumer Products (GCPL) slipped over 28 per cent to hit its 52-week lows. While the fall was largely on account of weak margin outlook due to commodity pressures, the stock has since recovered a bit on long term prospects and attractive valuations.

Among the key commodities that will impact the raw material basket for the company and the sector are higher palm oil and crude oil prices. Analysts led by Vivek Maheshwari of Jefferies India point out that palm and crude oil prices are up 40-50 per cent