Godrej Consumer Products Ltd (GCPL) shares fell sharply during Monday's market session. The stock fell 10.81 percent, reaching a day low of Rs 1,102. It was last seen trading 9.48% lower at Rs 1,118.50. At this pricing, the stock has lost 2.28 percent in the calendar year 2024 thus far.

Today's stock price decline occurred after the FMCG company stated that it expected demand and margin issues in the near term. "The standalone business is expected to report around flattish underlying volume growth(UVG) and around mid-single digit sales growth in this quarter (Q3 FY25)," according to a filing with the stock exchange. "We anticipate a temporary downward breach of the normative EBITDA margins this quarter," it stated.

"In parallel but unrelated, climatic conditions have not been favorable (delayed winters in North and a cyclone in South India) to the Home Insecticides (HI) segment, which accounts for one-third of our independent business. This has had an impact on HI category growth in the current quarter," the business added.

GCPL highlighted that the country's demand circumstances have been low in recent months. However, it stated that the margin pressure is likely to be temporary and that the overall business is solid.

CLSA has issued the stock a 'Underperform' rating, implying a lower end target price of Rs 1,000 based on the company's Q3 FY25 sales and EBITDA warning. "In Hawaii, seasonal instability would persist despite new product releases. Margins are also likely to fall below the normal range," it said.

Separately, UBS and Jefferies have issued a 'Buy' recommendation on GCPL shares, with targets of Rs 1,450 and Rs 1,550 respectively.

JPMorgan maintains its 'Overweight' rating for Godrej Consumer, with a target price of Rs 1,410. Macquarie maintained its 'Neutral' position, but decreased its objective to Rs 1,260 from Rs 1,300 previously.

As of September 2024, promoters owned 63 percent of the FMCG firm.