Add Godrej Consumer, target price Rs 1,280: ICICI Securities

ICICI Securities has an add call on Godrej Consumer Products with a target price of Rs 1280.0. The current market price of Godrej Consumer is Rs 1112.95. Godrej Consumer Products, incorporated in 2000, is a Large Cap company with a market cap of Rs 113809.62 crore operating in the FMCG sector.

Godrej Consumer Products key products/revenue Segments include Personal Care and Other Operating Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 3851.53 crore, up 2.64 % from last quarter Total Income of Rs 3752.32 crore and up 3.27 % from last year same quarter Total Income of Rs 3729.72 crore. The company has reported net profit after tax of Rs 498.31 crore in the latest quarter.

The company's top management includes Ms.Nisaba Godrej, Ms.Ireena Vittal, Ms.Pippa Tubman Armerding, Mr.Sumeet Narang, Mr.Omkar Goswami, Mr.Nadir Godrej, Mr.Pirojsha Godrej, Ms.Tanya Dubash, Mr.Sudhir Sitapati, Ms.Shalini Puchalapalli. Company has BSR & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 102 crore shares outstanding.

Investment Rationale
ICICI Securities has cut its earnings estimates by 3%/6% for FY25E/26E; modelling revenue / EBITDA / PAT CAGR of 7% / 10% / 14% over FY24-27E. Maintain ADD with an SoTP-based revised target price of Rs 1,280 (Rs 1,430 earlier). At the target price, the stock will trade at 50x P/E multiple Sept?26. Key downside risk is structural deceleration in India household insecticides and rise in competitive intensity from smaller/unorganized players.

Promoter/FII Holdings
Promoters held 53.04 per cent stake in the company as of 31-Dec-2024, while FIIs owned 20.68 per cent, DIIs $Parser.toNumber($MarketsData-marketResults.newShareHolding.summary.dii.percentage) per cent.