Medium-term volume, margin targets positive for Godrej Consumer

There could be pressure in the near term due to sharp rise in commodity costs

The stock of Godrej Consumer Products was up 5.4 per cent after the company outlined a refreshed strategy aimed at growing its volumes in double digits and expanding its margins by 150–200 basis points (bps) over the medium term.

The growth plan, outlined by the company’s new Managing Director and Chief Executive Officer Sudhir Sitapati, improved the sentiment for the stock which had, prior to Tuesday’s upmove, corrected 18 per cent in three months. 

The double-digit volume growth is expected to come on the back of increased penetration, accounting for half the overall gains, while market share, demand growth, and