Why Godrej Consumer Shares Hit All-Time High Even After Reporting ₹1,893 Cr Loss In Q4

Shares of Godrej Consumer were surging on Tuesday going up over 7% to hit a new all-time high of ₹1,346.70.

What Happened: The FMCG major reported a consolidated net loss of ₹1,893 crore for the March quarter, compared to a net profit of ₹452 crore in the same period last year. This loss includes a one-time exceptional loss of ₹2,376 crore. The company’s total revenue rose by 6% to ₹3,385.61 crore from ₹3,200.16 crore a year ago. The board also recommended an interim dividend of ₹10 per share for the financial year 2023-24.

Analyst Reactions: Jefferies maintained its “buy” rating for the stock with a price target of ₹1,520. The research firm said that the company’s earnings for the quarter ended March beat its estimates. The analyst also highlighted that the company registered industry-leading volume growth and was seeing strong traction in Indonesia.

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JP Morgan also maintained its “overweight” rating for the stock with a price target of ₹1,300. The brokerage also said that the company’s India volume growth was best in class. The analysts added that the company’s overseas were better than expected.

Emkay maintained its “add” rating for the stock with a price target of ₹1,350. The analysts said that the company’s better-than-expected performance was driven by strong performance in the international markets. While overall international revenue declined by 2%, it outperformed expectations of a 10% decline. International EBITDA experienced robust growth of 34%, accompanied by a 16% EBITDA margin, representing an improvement of 435 basis points year-on-year.

Price Action: Shares of Godrej Consumer were up 5.61% to trade at ₹1,320.30 as the markets opened on Tuesday.

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