Brokerages bullish on Godrej Consumer post Q3 biz update; here's why

Nomura has maintained Godrej Consumer as its top pick and forecasts an Earnings per share (EPS) compound annual growth rate (CAGR) of 18.5 per cent over FY26-28F

Godrej Consumer Products share price today

Godrej Consumer Products shares rose 1.7 per cent, logging an intra-day high at ₹1,275 per share on BSE, after the company released its Q3FY26 business update.  At 9:35 AM, Gidrej Consumer Products shares were trading 0.41 per cent higher at ₹1,258.75 per share. In comparison, BSE Sensex was down 0.15 per cent at 84,933.8. 

Godrej Consumer Products Q3 update details

Godrej Consumer Products reported its Q3FY26 business update on Tuesday, after market hours. The company expects its standalone business to deliver double-digit revenue growth for the quarter, underpinned by close to double-digit underlying volume growth (UVG), albeit on a supportive comparator. 

 

 

Further, it anticipates the home care segment to deliver double-digit value growth, while personal care is expected to record mid-single-digit value growth. Standalone Earnings before interest, tax, depreciation and amortisation (Ebitda) margins to revert to the normative range for the business, aided by favourable input costs, disciplined cost management, calibrated pricing actions, and improved operating leverage—reinforcing our commitment to delivering profitable, quality growth.

 

For international business, the company expects close to double-digit revenue growth in INR terms and double-digit Ebitda growth.  ALSO READ | Brokerages back Titan on market-share gains, store expansion post Q3 update

Brokerages’ view on Godrej Consumer Products

Nomura | Buy | Target: ₹1,520

The brokerage has maintained Godrej Consumer Products stock as its top pick and forecasts an Earnings per share (EPS) compound annual growth rate (CAGR) of 18.5 per cent over FY26-28F. Nomura believes the company’s consolidated revenue would have grown by 9.5 per cent year-on-year (Y-o-Y), better than its earlier estimate of 6.7 per cent Y-o-Y.

 

It expects Ebitda growth of 12.8 per cent Y-o-Y, above its expectation of 9.5 per cent Y-o-Y. It also reckons that revenues/volumes grew at 10 per cent Y-o-Y, above the brokerage’s forecast of 8 per cent Y-o-Y.  ALSO READ | Mixed Q3 seen for building materials; wood panels to lead: Elara Capital

Antique Stock Broking | Buy | Target hiked to ₹1,390 from ₹1,360

The brokerage reckons that emerging categories (fabric care and air fresheners) and the new Renofluthrin (RNF) molecule in household insecticides (HI) will continue to be the growth levers in the medium to long term. 

 

Antique built in sales/ earnings CAGR of 12 per cent/ 16 per cent over FY25-28E, driven by the expected strong growth of emerging categories and HI. “We maintain our positive outlook on the company on a medium to longer term basis,” the brokerage said. 

 

Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.