1:2 Split Of 127-Year Old Godrej Soon; Godrej Cons, Godrej Prop, Godrej Ind Is Splitting; Stocks To BUY/SELL

After 127 years, one of the mega conglomerates of India, the Godrej family is splitting including its listed businesses Godrej Properties, Godrej Consumer Products, and Godrej Industries. The Godrej Family has announced an ownership realignment of their shareholdings in the Godrej Companies. This will be one of the biggest splits in the ratio of 1:2 in India. Amidst such, which Godrej stock to buy?

In its regulatory filing, the Godrej Family said that the realignment has been arrived at in a respectful and mindful way to maintain harmony and to better align ownership in acknowledgment of the differing visions of the Godrej family members.

The move is expected to maximize strategic direction, focus, agility, and
will accelerate the process of creating long-term value for shareholders and all other stakeholders.

What will be the new structure of Godrej companies after splitting?

As per the statement, Jamshyd Godrej, Chairperson and Managing Director, Nyrika Holkar, Executive Director, and their immediate families will take control of Godrej Enterprises Group (GEG).

GEG comprises of Godrej & Boyce (G&B) and its affiliates, which have 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.

GIG includes listed companies such as Godrej Industries, Godrej Consumer Products, Godrej Properties, Godrej Agrovet, and Astec Lifesciences.

Giving a future outlook, Jamshyd Godrej said: "Since 1897, Godrej & Boyce has always been driven by the strong purpose of nation-building. With this future-facing family agreement now in place, we can further drive our growth aspirations with fewer complexities and focus on leveraging our core strengths in high-tech engineering and design-led innovation across our strong portfolio of strategic, consumer, and emerging businesses."

While Nadir Godrej said "Godrej was founded in 1897 to help build economic independence for India. This deep purpose of innovating for a cause - the values of trust and respect and the belief in trusteeship and making communities that the companies operate in stronger and better - continues to form the bedrock of who we are 125 years later. We look forward to building on this legacy with focus and agility."

Notably, both Groups will continue to use the Godrej brand and are committed to growing and strengthening their shared heritage. The family members wish each other every success for the future.

Which Godrej Stocks To Buy Ahead Of Splitting?

Godrej Consumer Products (CMP: Rs 1219.50):

In its latest research note, Sharekhan "We expect key product launches in the domestic market to help in improving the growth trajectory of the India business going ahead. With strategies in place, management targets to achieve double-digit growth over the next 2-3 years (largely driven by improved sales volume)."

Sharekhan noted added, "The company targets a consistent improvement in OPM through premiumisation and operating efficiencies in the medium to long run (especially in the international business). We maintain a Buy on the stock with an unchanged price target (PT) of Rs. 1,455. The stock trades at 53x and 45x its FY2025E and FY2026E earnings, respectively."