Nuvama Institutional Equities has maintained positive outlooks on Godrej Consumer Products, Sobha, and Dabur India following their Q1FY27 business updates. The brokerage projects potential gains for these companies as they navigate volume growth and easing cost pressures. Investors should monitor how these firms manage input costs and sustain consumer demand throughout the fiscal year.
Nuvama Institutional Equities has released its latest assessment of consumer goods and real estate companies following the release of Q1FY27 business updates. The brokerage maintains a positive stance on Godrej Consumer Products, Sobha, and Dabur India, citing encouraging volume trends and operational updates as primary drivers for its outlook.
Godrej Consumer Products and Margin Trends
For Godrej Consumer Products, Nuvama points to a potential recovery in profit margins throughout FY27. While the company faced pressure from elevated raw material costs early in the first quarter, these pressures reportedly began to subside as the quarter concluded. The company has focused on offsetting these costs through a combination of pricing strategies, internal cost-saving measures, and more efficient media spending. Analysts are now forecasting year-on-year consolidated revenue growth of 17.1% and EBITDA expansion of 12.4%. Performance in international markets is also being monitored, with the company projecting 15% sales growth in Indonesia and 20% growth in its Global African Union segment.
Sobha and Real Estate Performance
Real estate developer Sobha reported record-breaking pre-sales of ₹3,660 crore in Q1FY27, marking a sharp increase compared to the same period last year. This performance was supported by the launch of 6.9 million square feet of new projects, most notably the Hoskote development. The company’s focus on the Bengaluru market remains a key pillar, with that region accounting for 57% of its total sales value during the quarter. Furthermore, the company saw its realization per square foot rise by 9% year-on-year to ₹15,655. Future growth for the company will depend on its ability to maintain project execution timelines and sustain demand in key urban real estate hubs.
Dabur India and Rural Demand
Regarding Dabur India, Nuvama’s report highlights that Q1FY27 performance metrics were slightly ahead of their initial projections. The brokerage expects consolidated revenue to rise by 11% and EBITDA by 10.7% year-on-year. A key area for investors to watch is the rural market, which the company noted is currently performing better than urban centers. This, combined with an expected 17% growth in the international business segment, forms the basis for the brokerage's outlook. Within its product portfolio, the Home and Personal Care segment is expected to see double-digit growth, while the Oral Care category is anticipated to maintain high-single-digit growth, supported by the performance of the Meswak brand.
Investors should note that while these projections are based on current business updates, actual performance remains subject to fluctuations in consumer demand, raw material price stability, and successful execution of expansion plans.