Godrej Consumer Share Price: What CLSA, HSBC say after the Q2FY27 business update
GCPL said its consolidated revenue growth in the September quarter is expected to be in the high teens, supported by high-single-digit underlying volume growth. The company also expects EBITDA to grow in double digits.
Shares of Godrej Consumer Products Ltd. will be in focus on Tuesday, October 6, after the company shared its Q2FY27 business update, indicating high-teens consolidated revenue growth, high-single-digit underlying volume growth and double-digit EBITDA growth.GCPL said its consolidated revenue growth in the September quarter is expected to be in the high teens, supported by high-single-digit underlying volume growth. The company also expects EBITDA to grow in double digits.The company said Q2 witnessed renewed inflation across several key raw-material baskets, which could put pressure on margins.For its standalone business, GCPL indicated teens revenue growth, with underlying volume growth in the high-single digits. However, a trade inventory correction is expected to have an estimated margin impact of around 100–150 basis points.In Indonesia, the company expects high-teens revenue growth, supported by high-single-digit volume growth.
Its Africa, US and Middle East businesses are expected to report robust double-digit revenue and volume growth.GCPL said it remains on track to deliver its full-year guidance of double-digit revenue and EBITDA growth. Management also indicated that certain business metrics could potentially exceed the guidance levels.Brokerage viewsCLSA maintained an 'Underperform' rating on GCPL with a price target of ₹743 per share. The brokerage expects consolidated revenue growth of 19%, compared with its earlier expectation of 17.6%, while EBITDA growth is estimated at 10.9%, against consensus expectations of 15.6%.HSBC retained its 'Hold' rating on GCPL with a price target of ₹990 per share.
The brokerage said that, after adjusting for the impact of inventory correction, Q2FY27 revenue was above estimates, while EBITDA was broadly in line with expectations.HSBC highlighted high-single-digit volume growth in both the consolidated business and India, while noting that rising cost inflation remains a key risk to estimates.GCPL shares ended 0.50% lower at ₹835.80 on Monday. The stock has declined around 33% so far this year.
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