Don't fall for GCPL's valuation, wait for good growth outlook: Analysts

Though the stock currently trades at its five-year historical average, investors should await improvement in growth prospects, say analysts

Cheap valuations may not always be the best investment argument and a buying point for a stock unless the future growth outlook of the company is reasonably good. That’s what the current risk-reward matrix of Godrej Consumer Products’ (GCPL) stock suggests.

The company, which is among leading makers of soaps, household insecticides and hair care products, owns consumer brands like Good Knight, Hit, Cinthol, Godrej No. 1, among others. In the past, continued muted performance of international businesses (over 45 per cent of its consolidated revenues) and competitive intensity in key domestic segments, among others has weighed on investor sentiment.