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Despite the weak rural growth, foreign brokerage Jefferies has maintained its 'buy' stance on the consumer company Godrej Consumer Products (GCPL). The brokerage has set the target at Rs 1,400, implying a potential upside of 20 per cent from the previous close of Rs 1,163

The brokerage is of the view that the CEO Sudhir Sitapati-led turnaround has taken longer than expected; nevertheless, it sees 2024 as likely to be a year of decisive turnaround. Jefferies added that it was looking forward to the growth or margin trend in RCCL, which is its recent acquisition in the space previously led by the Raymond Group.

The brokerage also highlighted that the depreciation of the Nigerian Naira and royalty model would impact the African region; however, the outlook for the Indo-Pacific region remains optimistic.

On a positive note, the brokerage pointed out that GCPL has the lowest EBIT exposure to the international market as compared to peers.

Furthermore, with EPS set to rise 20 per cent CAGR, GCPL remains the top pick of the brokerage within the consumer segment.

Earlier, after the company’s Q3 business update, CLSA retained its ' sell' rating on the counter, with a target price of Rs 936.