Earnings Update: Here's Why Analysts Just Lifted Their Godrej Consumer Products Limited (NSE:GODREJCP) Price Target To ₹1,275

It's been a good week for Godrej Consumer Products Limited (NSE:GODREJCP) shareholders, because the company has just released its latest quarterly results, and the shares gained 6.9% to ₹1,237. The result was positive overall - although revenues of ₹37b were in line with what the analysts predicted, Godrej Consumer Products surprised by delivering a statutory profit of ₹5.68 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Godrej Consumer Products

After the latest results, the 33 analysts covering Godrej Consumer Products are now predicting revenues of ₹158.0b in 2025. If met, this would reflect a notable 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 37% to ₹23.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹160.4b and earnings per share (EPS) of ₹23.58 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.7% to ₹1,275. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Godrej Consumer Products at ₹1,520 per share, while the most bearish prices it at ₹996. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Godrej Consumer Products' rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Godrej Consumer Products is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Godrej Consumer Products analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Godrej Consumer Products you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.