Introduction:
Godrej Consumer Products Limited witnessed a significant drop in share value as it projected a muted growth outlook for the October-December quarter. The company cited weak demand in the FMCG sector and flat volume growth as key challenges.
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Share price movement:
On December 9, Godrej Consumer Products Ltd (BSE: GODREJCP) opened at ₹1,179.90, reached a high of ₹1,179.90 and a low of ₹1,102.00; the stock closed at ₹1,127.90, down by 8.72%. The company’s market capitalization is ₹1,15,385.06 crore.
Why is Godrej Consumer share falling?
Godrej Consumer shares are falling as the company projected mid-single-digit sales growth for Q3, with flat volume growth in its standalone business. Weak demand in the FMCG sector has dampened growth, raising concerns about its near-term performance.
The company also warned of temporary margin pressure due to a high base effect and unfavourable commodity prices. This has sparked fears about its ability to sustain profitability in the current challenging environment.
Adverse weather conditions have further hurt performance, impacting its Home Insecticides segment. A delayed winter in the North and a cyclone in the South have disrupted sales, adding to investor worries.
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About Godrej Consumer:
Godrej Consumer Products Limited is a leading FMCG company specialising in personal care, home care, and hair care products. Focusing on innovation and sustainability, it offers high-quality solutions tailored to consumer needs, earning a trusted reputation in domestic and global markets.
Shareholding pattern of Godrej Consumer:
All values in % | Sep 2024 | Jun 2024 | Mar 2024 |
Promoter | 63 | 63.0 | 63.2 |
FII | 22.0 | 22.4 | 22.6 |
DII | 9.6 | 9.3 | 8.4 |
Public | 5.4 | 5.3 | 5.4 |
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.