Godrej Consumer Products hits 52-week high post strong Q4 results. Should you buy, sell, or hold?

Godrej Consumer share price, Godrej Consumer Q4 results 2024, Godrej Consumer target price: Godrej Consumer Products shares on Tuesday, May 7 clocked a fresh 52-week high on D-Street after the Mumbai-headquartered FMCG firm reported better-than-expected March quarter results. The stock rose as much as 7.9 per cent to clock a fresh 52-week high of Rs 1,349.65, surpassing the earlier peak of Rs 1,299.9 hit on February 1, 2024. The stock closed at Rs 1319.25, up 5.48 per cent on BSE.

Godrej Consumer Q4 results

On Monday, post market hours, The FMCG major—whose popular brands include Cinthol, HIT, Good Knight and Ezee—posted a consolidated net loss of Rs 1,893.2 crore for the January-March period owing to a one-time charge of Rs 2,376 crore on account of restructuring costs, as against a consolidated net profit of Rs 452.1 crore for the corresponding period a year ago. 

According to a regulatory filing, the FMCG major registered revenue of Rs 3,385.6 crore for the March quarter, up 5.8 per cent on a year-on-year basis driven by higher demand for its home and personal care products. 

According to Zee Business research, Godrej Consumer Products' was estimated to log a consolidated net profit of Rs 514 crore and revenue of Rs 3,348 crore for the fourth and final quarter of the financial year 2023-24. Read more on Godrej Consumer Products Q4 results 

Godrej Consumer Products Q4 result review: Here's what Anil Singhvi suggests

Zee Business Managing Editor Anil Singhvi suggests buying Godrej Consumer Products futures for targets of Rs 1,265 and Rs 1,280 with a stop loss at Rs 1,210, citing better-than-expected results, and strong as well as best-in-sector volume growth. 

The net loss was due to an exceptional item of Rs 2,375 crore, and the operational performance is very strong, the market guru points out. 

Godrej Consumer dividend

Godrej Consumer has announced a dividend of Rs 10 per share. Read more on Godrej Consumer dividend

Godrej Consumer target price: Should you buy, sell, or hold?

Post quarterly results, Jefferies has stated the following key points in its note:  

• 4Q above estimates, with 18 per cent EBITDA LFL growth.
• Key positives include HSD and industry-leading volume growth in soaps, double-digit volume growth in emerging categories, strong traction in Indonesia & good EBITDA delivery in GAUM
• Weak HI key dampener

 JPMorgan highlighted the following key points in its note:

• Q4 India volume growth remains best-in-class
• Overseas margins do better than expected
• Indonesia -solid revenue and margin delivery party aided by season shift

According to the analysts at JPMorgan, comments on demand/margin outlook coupled with updates on key strategic initiatives (New product launches) will be key to watch out for. 

(With inputs from agency)

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