Godrej Consumer falls 5% as brokerages turn cautious on growth

Godrej Consumer Products’ share price fell over 5 per cent on Thursday, after brokerages turned cautious on the company’s growth performance following GPCL’s business update call.

 

As of 01:33 PM, the company’s share price was down 3.54 per cent to ₹873; meanwhile, Nifty 50 was trading 0.07 per cent higher at 23,931.35. Intraday, the stock has fallen 5.08 per cent to ₹859.55

 

Brokerage firm Motilal Oswal Financial Services noted that the company’s growth performance over the past five years has been below aspirations. “Organic UVG stood at 4 per cent for both India and the consolidated business, with organic sales growth of 7 per cent/6 per cent and Ebitda growth of 6 per cent. 

 

 

MOFSL highlighted that the key structural weakness has been flattish revenue growth in core categories alongside profitability pressure. “Management, however, believes GCPL is materially stronger today, with a simplified operating structure, stronger balance sheet and capital allocation framework, and multiple growth pilots in place,” it said.

 

GCPL will retain its broad strategy while increasing resources to areas where it has a clear right to win, with execution driven through granular country-, category- and market-level action plans, the brokerage said.

 

Meanwhile, HDFC Securities noted that GPCL stock’s 27 per cent year-to-date correction reflects inflationary pressures and abrupt management changes. While a prolonged El Niño could keep input volatility elevated, corrective actions are underway. “We expect any rerating to be execution-led, with consistent delivery under the new leadership as the key catalyst. Management has broadly maintained FY27 guidance, with incremental pressure likely from trade destocking in India and a higher media spend,” the brokerage added.

 

HDFC Securities also highlighted that GPCL’S new leadership aims to accelerate GCPL’s innovation and category-expansion agenda through a three-pronged approach: entering new categories, building a futuristic think tank under G-lab, and finding white spaces beyond home care. Internationally, the thrust is on scaling innovation with speed.

 

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