The analyst said that the stock’s breakdown below ₹1,160 signals continued weakness, advising traders to remain cautious.
Shares of Godrej Consumer Products (GCPL) fell over 1% on Wednesday after the consumer goods company said it expects its revenue to increase only in the mid-single digits in the second quarter of FY26 amid the GST 2.0 transition.
The company, which manufactures household products such as Godrej No.1, Cinthol, Godrej Expert, and Ezee, announced that nearly one-third of its products will now be taxed at 5% GST, down from 18%, following a reduction in tax in this bracket. The items include soaps, shampoos, talcum powders, and shaving creams, among others.
The company said that it has already passed on the tax advantage to customers from September 22 and expects this to drive volume-based growth and create long-term value. It warned, though, that the transition period could see EBITDA margins hit as distributors offload old stock.
However, it is forecasting an improvement in the second half of the year.
Domestic And International Business Trends
Domestically, the company expects mid-single-digit value growth and low-single-digit volume growth. The home care business is leading with high-single-digit value growth, while personal care is seeing some weakness due to softer soap sales.
Overseas, results were mixed. The Indonesian business continues to face pricing pressure, posting a slight decline in value, though volumes remain positive.
Meanwhile, markets in Africa, the U.S., and the Middle East (GAUM) are set to deliver double-digit value and volume growth for the third consecutive quarter, the company said.
Technical View
SEBI-registered analyst Prabhat Mittal said Godrej Consumer has been under pressure since peaking at ₹1,541.80 on Sept. 11, 2024, and later sliding to a low of ₹980 on March 4, 2025.
He said the stock attempted a rebound between March and April 2025 but failed to break out, forming a triple top around ₹1,308. After briefly finding support at ₹1,160, the stock broke below this crucial level last week and is now trading below all major moving averages, which he called a weak technical sign.
Mittal said traders can consider selling near ₹1,133 with a stop loss above ₹1,171, looking for targets of ₹1,000 and ₹980. He added that the technical setup would remain negative until the stock moves decisively back above its key resistance levels.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘neutral’ amid ‘normal’ message volume.
Godrej Consumer Products’ stock has risen 5.5% so far in 2025.
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