Godrej Consumer Products Ltd Share Price – NSE  / BSE

FMCG, Mid Cap

Godrej Consumer Products Ltd fell for a fifth straight session today. The stock is quoting at Rs 1375, down 0.97% on the day as on 13:19 IST on the NSE. The benchmark NIFTY is up around 0.1% on the day, quoting at 24162.8. The Sensex is at 79107.38, up 0.19%.Godrej Consumer Products Ltd has eased around 4.29% in last one month.Meanwhile, Nifty FMCG index of which Godrej Consumer Products Ltd is a constituent, has increased around 2.04% in last one month and is currently quoting at 61495.75, down 0.32% on the day. The volume in the stock stood at 7.17 lakh shares today, compared to the daily average of 11.85 lakh shares in last one month.

The benchmark August futures contract for the stock is quoting at Rs 1369.65, down 1.2% on the day. Godrej Consumer Products Ltd jumped 32.02% in last one year as compared to a 24.13% rally in NIFTY and a 18.3% spurt in the Nifty FMCG index.

The PE of the stock is 96.02 based on TTM earnings ending June 24.

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The headline equity benchmarks pared all losses and traded with minor gains in early afternoon trade. The Nifty traded above the 24,300 level. Pharma shares extended gains for the second consecutive trading session. Trading was volatile due to weekly F&O series expiry today.

At 12:30 IST, the barometer index, the S&P BSE Sensex, was up 86.13 points or 0.11% to 79,554.14. The Nifty 50 index added 19.70 points or 0.08% to 24,317.20.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.30% and the S&P BSE Small-Cap index added 0.71%.

The market breadth was positive. On the BSE, 2,270 shares rose and 1,496 shares fell. A total of 129 shares were unchanged.

Economy:

On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (August 8, 2024) decided to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50%.

Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25% and the marginal standing facility (MSF) rate and the Bank Rate at 6.75%.

The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth.

These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

The projected real GDP growth for 2024-25 is maintined at 7.2%. The quarterly breakdown is as follows: Q1 at 7.1%; Q2 at 7.2%; Q3 at 7.3%; and Q4 at 7.2%. Real GDP growth for Q1:2025-26 is projected at 7.2%.

The projected CPI inflation for 2024-25 remains unchanged at 4.5%. The quarterly breakdown is as follows: Q2 at 4.4%; Q3 at 4.7%; and Q4 at 4.3%. CPI inflation for Q1:2025-26 is projected at 4.4%.

During the recent policy meeting, Dr. Shashanka Bhide, Dr. Rajiv Ranjan, Dr. Michael Debabrata Patra and Shaktikanta Das voted to keep the policy repo rate unchanged at 6.50%. Dr. Ashima Goyal and Prof. Jayanth R. Varma voted to reduce the policy repo rate by 25 basis points.

The minutes of the MPC’s meeting will be published on August 22, 2024. The next meeting of the MPC is scheduled during October 7 to 9, 2024.

Derivatives:

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.76% to 16.46. The Nifty 29 August 2024 futures were trading at 24,330.05, at a premium of 12.85 points as compared with the spot at 24,317.20.

The Nifty option chain for the 29 August 2024 expiry showed maximum Call OI of 42.1 lakh contracts at the 25,000 strike price. Maximum Put OI of 39.5 lakh contracts were seen at 24,000 strike price.

Buzzing Index:

The Nifty Pharma index gained 0.93% to 22,242.15. The index rallied 3.15% in two consecutive trading sessions.

Alkem Laboratories (up 3.32%), Lupin (up 2.74%), Natco Pharma (up 1.91%), Zydus Lifesciences (up 1.47%), Cipla (up 1.36%), Ipca Laboratories (up 1.31%), Laurus Labs (up 1.18%), J B Chemicals & Pharmaceuticals (up 1.16%), Mankind Pharma (up 0.87%) and Gland Pharma (up 0.84%) advanced.

On the other hand, Divis Laboratories (down 0.53%) and Biocon (down 0.25%) edged lower.

Stocks in Spotlight :

Godrej Consumer Products (GCPL) slipped 3% to Rs 1,456. The company reported 41.36% increase in consolidated net profit to Rs 450.69 crore in Q1 FY25 as comapred with Rs 318.82 crore in Q1 FY24. Revenue from operations fell 3.4% YoY to Rs 3,331.58 crore during the quarter.

KPI Green Energy was hit an upper circuit of 5% after the company’s consolidated net profit surged 98.76% to Rs 66.11 crore in Q1 FY25 as compared to Rs 33.26 crore recorded in Q1 FY24. Revenue from operations climbed 83.78% year on year (YoY) to Rs 348.01 crore in Q1 FY25.

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Revenue from operations fell 3.4% YoY to Rs 3,331.58 crore during the quarter.

Profit before tax (PBT) stood at Rs 644.03 crore in Q1 FY25, up 34.21% YoY.

During the quarter, EBITDA grew 13% YoY and EBITDA margin increased by 310 bps to 21.9%.

India business organic volume grew by 8% and reported volume grew by 10%.

Home care segment grew 8%. Household Insecticides volume growth was stable at low-single digit, impacted by severe heatwaves. Air Fresheners continue to consistently deliver double-digit volume growth. Fabric Care delivered strong double-digit volume growth. After a strong performance, Godrej Fab has been scaled up nationally across select channels and general trade in select states.

Personal care segment increased 6%. Personal Wash delivers stable volume growth at low single-digit. Magic Handwash continues to deliver strong double-digit volume growth and gain share. Park Avenue and KamaSutra continue to deliver a healthy sales run-rate; delivered sales of Rs 153 crore.

Indonesia sales grew by 11% in constant currency terms and 3% in INR terms. INR sales was impacted by significant currency depreciation. Volumes grew by 7%.

Africa, USA and Middle East (organic) sales declined 25% in INR terms and 10% in constant currency terms, year-on-year and performance in INR terms was further impacted by the devaluation of Naira. Absolute EBITDA has increased from Rs 66 crore to Rs 78 crore. while Latin America and SAARC sales grew by 7% in INR terms and grew by 147% in constant currency terms, year-on-year.

Sudhir Sitapati, managing director and CEO, GCPL, said, “We remain focused on driving volume-led growth along with healthy investments in our brands and improvement in profitability. We continue to have a strong balance sheet. We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth across our portfolio through category development.

Today, we are announcing the formation of Godrej Pet Care (GPC), a subsidiary of GCPL. Pet foods is already a Rs 5,000 crore category with many decades of late teens growth ahead. To give a perspective, only around10% of Indians own a pet of which only 10% feed packaged food and that too only 40% of the time. Calorie conversion in India is only 4%. China, which was remarkably similar to India 15 years ago, has 20% pet ownership with a calorie conversion of 25%.

GCPL will invest the entire capital of Rs 500 crore in GPC over a period of 5 years, post which we see GPC becoming cash flow positive. GAVL will be our manufacturing and R&D partner. Lead times to set up capex are long, and we hope to commence manufacturing in the second half of next year.”

Meanwhile, the company’s board has declared interim dividend of Rs 5 per share for financial year 2024-2025. The record date is fixed as on Friday, 16 August 2024. The dividend will be paid on or before Friday 6 September 2024.

Further, the company’s board approved to enter into Pet Care business through its subsidiary. It will invest Rs 500 crore over a period of 5 years in one of its subsidiary company. Plan to commence production in second half of FY 2026. “Pet Foods is a approximately Rs 5,000 crore category, with a potential of strong double-digit growth for the next few decades,” the company stated in exchange filing.

Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colorants, toiletries and liquid detergents.

The scrip declined 3.53% to Rs 1450.80 on the BSE.

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Godrej Consumer Products has allotted 74,618 equity shares under Godrej Consumer Products Limited Employees Stock Grant Scheme, 2011. Consequently, the issued capital of the Company stands increased to 102,29,26,071 equity shares of Re.1 each and the subscribed and paid up capital of the Company stands increased to 102,28,94,947 equity shares of face value Re.1 each

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