1:2 Split Soon: Not ITC Or HUL, But This FMCG Giant Stock To Fetch 21% Gains In 30 Days, Beats Nifty 100

One leading FMCG stock is attractive to buy for fetching over 21% returns in 30 days. With over 34% returns in a year, this FMCG player has outrun Nifty 100 by 8.36%. And it is not the two largest FMCG ITC and Hindustan Unilever (HUL), but Godrej Consumer Products. Godrej-titled consumer company will be undergoing a split of 1:2 with a change in ownership.

In its trading ideas for monthly picks, Axis Securities has recommended BUY on Godrej Consumer stock. As per the brokerage, the entry price range is Rs 1,294 to Rs 1,320 for a target price of Rs 1,600 apiece with a stop loss of Rs 1,213 apiece.

With the latest target, Godrej Consumer has a potential of over 21.1% upside from the market price of BSE.

Also, as per the brokerage, in the last 1 year Godrej Consumer Products Ltd, has beaten the Nifty 100 by 8.36% (CAGR difference), However, the volatility of Godrej Consumer Products Ltd has been Higher than the Nifty 100 volatility by 0.81%.

Another brokerage that has buy advice on Godrej Consumer is also Motilal Oswal.

In its research note, Motilal said, "GCPL has improved the India business sales growth in recent years. It has delivered industry-leading volume growth in the India business over 9MFY24 and is likely to record double-digit EPS growth over FY24-26E. The implementation of disruptive innovations, the introduction of access packs, expansion into new growth categories, and increased advertising expenditure are anticipated to contribute to a consistently robust growth trajectory in this high-margin and high-ROCE domestic business."

Motilal's note added, "The company is consistently working towards expanding TAM for the India business along with product innovation to drive frequency. Besides, there has been a consistent effort to fix the gaps in profitability/growth for its international business. We reiterate our BUY rating with a TP of INR1,550 (based on 55x FY26E EPS)."

In Q4FY24, Godrej delivers a strong double-digit EBITDA growth on the back of double-digit volume growth. Q4 EBITDA stood at Rs 535 crore up by 12% in India, while sales surged by 12% YoY to Rs 2,007 crore and volumes were up by 15% YoY.

On May 10, Godrej Consumer's share ended at Rs 1320.95 apiece, down by 0.74% with a market cap of Rs 1,35,109.45 crore. The stock is near its 52-week high of Rs 1,372 apiece.

In the trading week from May 6-10, the stock jumped by 4.34%. While YTD, the stock is up by 15%. The positive gains were despite the Godrej Family's announcement of an ownership realignment of their shareholdings in the Godrej Companies.

The Godrej Family is splitting into two. Jamshyd Godrej, Chairperson and Managing Director, Nyrika Holkar, Executive Director, and their immediate families will take control of Godrej Enterprises Group (GEG).

GEG comprises Godrej & Boyce (G&B) and its affiliates, which have a presence across multiple industries spanning Aerospace, Aviation, Defence, Engines and Motors, Energy, Security, Building Materials, Construction, Green Building Consulting, EPC Services, Intralogistics, Healthcare Equipment, Durables, Furniture, Interior Design, Architectural Fittings, IT, Software as well as Infrastructure Solutions.

Meanwhile, listed companies that come under Godrej Industries Group (GIG) will be controlled by Nadir Godrej as Chairperson and will be controlled by Adi Godrej, Nadir Godrej, and their immediate families. Pirojsha Godrej will be the Executive Vice Chairperson of GIG and will succeed Nadir Godrej as the Chairperson in August 2026.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.