Godrej Consumer: Management may maintain margins at current elevated levels

Godrej Consumer Products stock is trading near its 52-week high

The Godrej Consumer Products (GCP) stock is trading near its 52-week high. A likely revival in volume growth, led by new product launches, is the reason for the Street’s enthusiasm. After a two-year gap, GCP plans to launch 10 new products, its highest ever across all major categories in the current financial year, which would improve its market penetration for key categories such as household insecticide (HI). After introduction of ‘Fast Card’ in the HI segment, it was able to increase rural penetration by five per cent. The company expects new products to contribute around a fourth to its FY19