1:2 Split Soon: Not ITC Or HUL, But This Godrej's FMCG Stock To Give 13% Gains In 5-15 Days Amid Budget

The FMCG sector is expected to be one of the top winners of the Modi 3.0 Union Budget for FY25. The sector is expecting more grants from the government, with major focus on a major focus on Micro, Small, and Medium Enterprises. FMCG is the country's fourth-largest sector and has consistently risen at a healthy rate over the years. Amidst this, there is a buying opportunity for gaining double-digit returns in a short duration. To be precise, nearly 13% gains can be potentially made in this 1 FMCG stock in the next 5-15 days.

This 1 FMCG stock is neither the largest consumer company, Hindustan Unilever (HUL) nor the second largest FMCG firm, ITC Ltd. But instead, Godrej Group-backed FMCG giant Godrej Consumer Products whose market value is currently nearly Rs 1,48,600 crore.

Ending at Rs 1,452.80 on July 16, Godrej Consumer share price surged by 1.17% in the closing bell. During the trading session, the stock touched a new 52-week high of Rs 1,471.25 apiece. And there are more gains to come ahead!

Axis Securities has placed Godrej Consumer stock as its positional pick which has a duration of mostly 5 days, 15 days, and 30 days. The stock is recommended to buy at an entry price of Rs 1,454, for a target price of Rs 1,637 apiece with a stop loss of Rs 1,439. The duration for the target price is set between 5 days to 15 days.

As per the brokerage's data, in the last 1 year, Godrej Consumer Products Ltd has beaten the Nifty 100 by 5.79% (CAGR difference). The volatility of Godrej is Higher than the Nifty 100 volatility by 0.7%, which is still okay compared to other peers. Also, for 7 out of the Last 12 Months, i.e. 58% of the time it has beaten Index returns.

Not just that as per Trendlyne data, the consensus recommendation from 36 analysts for Godrej Consumer Products Ltd. is BUY. Of the total, 28 analysts have either recommended 'STRONG BUY' or 'BUY', while 5 of them have suggested HOLD.

Some of the positive fundamentals of Godrej Consumer is that the stock rose 36.67% and outperformed its sector by 16.56% in the past year. Its Debt to Equity Ratio of 0.25 is less than 1 and healthy, which implies that its assets are financed mainly through equity. Also, Mutual Fund Holding increased by 0.41% in the last quarter to 5.56, as per the data.

YTD, the stock is up by 27% on BSE, while in a year, the stock rallied by 37%.

In its Q1FY25 update, earlier this month, Godrej stated that despite the operating conditions in India continuing to remain soft in the quarter, its India business performed well with high-single-digit organic volume and mid-single-digit
value growth. Reported growth will be double-digit in volume and high-single digit in value terms.

Godrej highlighted that Q1 growth was broad-based across both Home Care and Personal Care. Demand in Household Insecticides had been soft for earlier parts of the quarter due to extreme heatwaves across the country. Park Avenue and KamaSutra brands are performing well post-portfolio simplification actions and are in line with its full year growth ambition.

Further, Godrej highlighted that in Q1, the GAUM (Godrej Africa, USA, and Middle East) organic business is expected to see double-digit volume decline largely led by West Africa due to a high base in Q1 FY24 on account of the appointment of a National Distributor giving a one-time sell-in benefit and some tough pricing decisions in Nigeria.

At a Consolidated level (organic), Godrej expects flattish INR sales, double-digit constant currency sales growth and double-digit EBITDA (reported) growth.

Notably, the Godrej Family is splitting into two. Jamshyd Godrej, Chairperson and Managing Director, Nyrika Holkar, Executive Director, and their immediate families will take control of Godrej Enterprises Group (GEG).

GEG comprises Godrej & Boyce (G&B) and its affiliates, which have a presence across multiple industries spanning Aerospace, Aviation, Defence, Engines and Motors, Energy, Security, Building Materials, Construction, Green Building Consulting, EPC Services, Intralogistics, Healthcare Equipment, Durables, Furniture, Interior Design, Architectural Fittings, IT, Software as well as Infrastructure Solutions.

Meanwhile, listed companies that come under Godrej Industries Group (GIG) will be controlled by Nadir Godrej as Chairperson and will be controlled by Adi Godrej, Nadir Godrej, and their immediate families. Pirojsha Godrej will be the Executive Vice Chairperson of GIG and will succeed Nadir Godrej as the Chairperson in August 2026.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.