We keep our FY26E-FY27E revenue estimates for Godrej Consumer Products Ltd. largely unchanged and lower EPS estimates by 4-5% to factor in near-term margin headwinds. We introduce FY28E estimates, and now build FY25-28E revenue/EPS CAGR of 10%/14%.
We maintain our Buy rating; we roll over valuation to June-2027E (from March-2027E) and value the stock on P/E of 54x (in-line with its current one-year forward P/E and long-period average), resulting in a revised target price of Rs 1,410 (vs Rs 1,420 earlier).
We like Godrej Consumer’s relatively stronger performance across categories; aggressive interventions in pricing, innovations and category penetration; outlook on mediumterm growth pickup and potential for margin improvement.
