Godrej Consumer will have to deliver on volumes for valuations to sustain

Firm sees momentum in key segments continuing this year

The Godrej Consumer Products (GCPL) stock has continued rising, despite the firm posting the weakest volume performance among FMCG players to have declared results.

It has risen  18.6 per cent since the results announcement on May 13, outperforming a 9.5 per cent rise in the Nifty FMCG index during the same period.

Besides attractive valuations (41x its FY21 estimated earnings compared to over 50x in the case of other FMCG majors), the positive management commentary mainly for the two key segments of household insecticides (HI) and soaps has also helped.