Nuvama maintains a buy rating on Godrej Consumer Products, citing strong international performance, domestic market-share gains, and expansion into new categories, despite near-term margin pressures and leadership changes.
Nuvama has kept a buy call on Godrej Consumer Products even after trimming its target price, pointing to continued growth in overseas markets, early domestic market-share gains and expansion in newer categories as reasons to stay constructive on the stock. The brokerage now sees the shares rising to ₹1,485, which it says implies about 43% upside, although the recent resignation of the chief executive remains an issue investors are watching closely.
The positive view comes despite near-term pressure on margins from higher input costs. Nuvama said Godrej Consumer’s pricing actions, including a larger-than-expected increase in India, have helped offset some of that inflation, but the company is still facing elevated raw material costs. The stock has also fallen about 10% recently, which has lifted the implied upside to the revised target.
A key part of the investment case is the company’s international business, particularly in Africa, the US and the Middle East, where performance has been described as strong. Nuvama said those operations delivered 25% constant-currency growth, 17% underlying volume growth and 42% EBITDA growth, with margins now structurally in the mid-teens. Domestically, the firm is also benefiting from market-share gains in household insecticides and a push into liquid dishwash, a category where penetration remains relatively low.
Other brokerages have also sounded upbeat. Nomura maintained a buy rating after a strong quarterly update and set a target price of ₹1,300, saying revenue growth could run ahead of the company’s own guidance. Financial Express reported that Nuvama is one of three stocks the brokerage currently favours. Godrej Consumer, which says it serves more than 1.1 billion consumers across over 80 countries, continues to lean on both scale and category expansion as it navigates a period of cost pressure.
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