Shares of Godrej Consumer Products Ltd (GCPL) plunged over 7 percent to a four-year low of Rs 777.20 on Friday, October 30, on the NSE, as investors weighed the company's July-September quarter earnings against mounting concerns over higher input costs, deteriorating microeconomic condition, margin pressure and a pending leadership appointment for its India business.
The Godrej Group stock opened at Rs 815 and fell 7.14 percent from its previous close of Rs 837 to hit an intraday low of Rs 777.20 on the NSE, its lowest level in over four years. It eventually pared some losses to settle 2.27 percent lower at Rs 818.10. The stock was the top loser on the Nifty FMCG index, which closed 0.53 percent lower at close.
Godrej Consumer Products shares have fallen nearly 5 percent so far in October and 26.80 percent over the past one year. The stock is down 34.46 percent on year-to-date basis.
The selloff came despite the fast-moving consumer goods (FMCG) major reporting the highest on-year rise in its net profit in the last six quarters for the September quarter, in which its bottom line declined for two quarters. It reported a 13.84 percent year-on-year increase in its consolidated net profit to Rs 522.92 crore for the September quarter of FY27, driven by volume growth. It had posted a net profit of Rs 459.34 crore in the July-September quarter a year ago.
However, rising input costs and concerns over the sustainability of margin recovery have tempered investor sentiment. The absence of a new chief executive officer for the company's India business remains another overhang.