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Investing.com - JPMorgan has reduced its price target on Godrej Consumer Products Ltd. (GCPL:IN) to INR1,250.00 from INR1,365.00 while maintaining an Overweight rating on the stock.
The revision follows GCPL’s second-quarter results, which showed EBITDA in line with expectations but revenue falling short of forecasts. India unit volume growth was 3%, with revenue increasing 4%, impacted by a 3-4% GST transition effect.
JPMorgan noted that second-half India growth should improve with sharper post-GST recovery in soaps and sustained healthy growth in air care, liquid detergent, and deodorants, though home insecticide volatility poses a risk due to seasonality.
The company’s management expressed confidence that India margins would revive to the lower end of the normative range (24-26%) in the second half, supported by better sales leverage, cost efficiency measures, and stable palm prices. GCPL has also entered two new categories: facewash through the Muuchstac acquisition and toilet cleaner with Godrej Spic.
JPMorgan has lowered its FY26/FY27E EBITDA forecasts by 7%/5%, moderating revenue and margin projections for India and Indonesia operations, resulting in the new September 2026 price target of INR1,250.
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