Godrej Consumer Products shares under pressure after Q1 results miss estimates; here's what investors may do

Godrej Consumer Products shares struggled below the flatline, moving within a narrow band a day after the FMCG major reported a weak set of quarterly numbers.

Godrej Consumer Products reported a weak set of Q1 results on August 7. | Image: Reuters

Godrej Consumer Products shares registered minor losses on Tuesday, trading within a narrow band, a day after the FMCG major reported a worse-than-expected set of quarterly numbers. The stock of Godrej Consumer Products — whose popular brands include Cinthol, Good Knight, Renew, Ezee and Aer — declined by as much as Rs 6.2 or 0.6 per cent to Rs 1,024.4 apiece on BSE, having slid into the red zone minutes after rising to as high as Rs 1,041.2 apiece.

EDITOR'S TAKE | Godrej Consumer Products futures have support at Rs 1,005 and Rs 1,020 levels

Zee Business Managing Editor Anil Singhvi pointed out that the FMCG company's results were weak on all parameters though volume growth in its India business was strong. The company registered volume growth of 10 per cent in its India business for the three-month period, according to a regulatory filing.

He sees a higher level in the stock at Rs 1,060 apiece.

TRENDING NOW

Godrej Consumer Products Q1 results

After market hours on Monday, Godrej Consumer Products reported a net profit of Rs 319 crore for the quarter ended June 30, translating into a decline of 7.5 per cent compared with the corresponding period a year ago.

Its revenue grew 10.4 per cent on a year-on-year basis to Rs 3,449 crore, and earnings before interest, taxes, depreciation and ammortisation (EBITDA) expanded 23.4 per cent to Rs 643 crore, according to the filing.

The company's margin — a key measure of profitability — improved by 190 basis points to 18.6 per cent.

Here's what brokerages make of Godrej Consumer Products after the earnings announcement:

According to Zee Business research, Godrej Consumer Products' quarterly net profit was estimated at Rs 433 crore, revenue at Rs 3,491 crore, EBITDA at Rs 696 crore and margin at 19.9 per cent.

Brokerage	Rating	Target price (TP)	TP vs Monday's closing price
CLSA	Reduce	Raised to Rs 1,040 from Rs 1,000	+0.9%
Morgan Stanley	Overweight	Reduced to Rs 1,072 from Rs 1,099	+4%
JPMorgan	Overweight	Reduced to Rs 1,135 from Rs 1,175	+10.1%
Goldman Sachs	Buy	Raised to Rs 1,200 from Rs 1,150	+16.4%
Citi	Buy	Rs 1,175	+14%
Jefferies	Buy	Rs 1,200	+16.4%
Nomura	Buy	Rs 1,225	+18.9%

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.

TAGS: