MUMBAI - Shares of Godrej Consumer Products Limited (GCPL) fell sharply on the Bombay Stock Exchange (BSE) today, as investors reacted to the company's projection of moderate volume growth for the third quarter of the fiscal year 2024 (Q3 FY24). The broader Fast-Moving Consumer Goods (FMCG) sector also felt the pressure, with notable peers like Marico, Dabur India, and Hindustan Unilever (LON:ULVR) Limited (HUL) experiencing stock declines.
GCPL's organic domestic business managed to achieve solid mid-single-digit growth, but this was overshadowed by the company's announcement of a flat revenue outlook for Q3 FY24. The anticipated impact of currency devaluation, especially the Naira, is expected to affect sales figures negatively.
Adding to the company's woes, brokerage firm CLSA has issued a sell recommendation on GCPL shares, with a revised target price of Rs 936. The advisory was based on concerns over flat sales growth and the potential implications of currency depreciation on the company's financial performance.
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