Results: Godrej Consumer Products Limited Delivered A Surprise Loss And Now Analysts Have New Forecasts

Shareholders of Godrej Consumer Products Limited (NSE:GODREJCP) will be pleased this week, given that the stock price is up 11% to ₹1,350 following its latest yearly results. Revenues came in at ₹141b, in line with estimates, while Godrej Consumer Products reported a statutory loss of ₹5.48 per share, well short of prior analyst forecasts for a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Godrej Consumer Products

Taking into account the latest results, the consensus forecast from Godrej Consumer Products' 31 analysts is for revenues of ₹154.1b in 2025. This reflects a solid 9.3% improvement in revenue compared to the last 12 months. Godrej Consumer Products is also expected to turn profitable, with statutory earnings of ₹23.30 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹156.0b and earnings per share (EPS) of ₹23.80 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at ₹1,356, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Godrej Consumer Products, with the most bullish analyst valuing it at ₹1,580 and the most bearish at ₹1,056 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Godrej Consumer Products shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Godrej Consumer Products'historical trends, as the 9.3% annualised revenue growth to the end of 2025 is roughly in line with the 8.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.6% annually. So although Godrej Consumer Products is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 forecasts for Godrej Consumer Products going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Godrej Consumer Products has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.