Godrej consumer products rebounds 10% from day's low on heavy volumes

Godrej Consumer Products rebounds 10% from day's low on heavy volumes

STOCK MARKET - Godrej Consumer Products (GCPL) gained 4% to Rs 963, bouncing back 10% from its intra-day low on BSE, on back of heavy volumes.

Till 1:26 pm; a combined 5.24 million shares representing 0.77% of total equity of GCPL changed hands on NSE and BSE. In past two weeks on an average 1.5 million shares were traded daily on both the exchanges.

The stock of personal products company dipped 5% to Rs 876, its lowest level since May 24, 2017, in early morning trade. It fell 19% in past five trading sessions from its record high level of Rs 1,084 touched on July 27.

GCPL had reported a lower than expected consolidated net profit and revenue in June quarter (Q1FY18), dragged down by subdued Indonesia performance and lower margins (weighed down by higher A&P spends across key geographies).

“India business performance was on expected lines and we expect growth to gather momentum as Goods & Service Tax (GST)-led disruption settles down in coming months.

Africa operations were steady and should benefit from scale up of wet hair care products going forward. However, visibility on Indonesia operations (marred by step up in promotional competitive intensity in Household Insecticides) remains limited, posing downside risk to earnings,” analyst at JP Morgan said in result update.

GET LIVE UPDATES ON MARKET ARTICLE SOURCE – BUSINESS STANDARD