Indonesia recovery hopes drive gains for Godrej Consumer, stock up 6%

Consistent growth across geographies, margin gain key to sustain stock rally

The Godrej Consumer Products (GCPL) stock gained over 6 per cent in early trade on hopes of a recovery in its Indonesian operations, upsides from premiumisation of its Household Insecticides (HI) segment and expansion of its personal care portfolio. The stock, however, gave up most of the gains ending about 1.5 per cent higher, in a weak market.

Hopes of a recovery in Indonesian business, which accounts for 16 per cent of overall revenues and 20 per cent of the company’s operating profits, has been the latest trigger for the stock. Since Q2FY20, the Indonesian constant currency sales growth has