Shares of Godrej Consumer Products Ltd. gained as investors and analysts bet on its product innovations and a recovery in home insecticides and hair care businesses.

The maker of Good Knight and Hit insect repellants guided for a high single to low double-digit growth in the home insecticides segment. It has also raised its penetration in the hand wash category by 1.5-1.7 times in urban and rural markets, according to the firm’s analyst day highlights compiled from brokerage reports. Godrej Consumer indicated that people have turned more health conscious, and this trend is likely to continue.

The fast-moving consumer goods company also said it’s currently witnessing a “V-shaped recovery” in the hair care business. While it’s unsure whether this trend will sustain, the firm’s expecting a recovery earlier than envisaged.

Nisaba Godrej, chairperson and managing director, in an interview to BloombergQuint in August had said the company planned to launch more hygiene products and household insecticides this year, without providing any further details. She, in an another interview to BloombergQuint in November, said the company was also betting on hair colours as people are now wearing masks.

Shares of Godrej Consumer Products rose as much as 3.6% around noon on Monday to Rs 745.95 apiece — the highest since October this year. Of the 39 analysts tracking the stock, 26 have a ‘buy’ rating, 12 suggest a ‘hold’ and one recommends a ‘sell’. The average of Bloomberg consensus 12-month price targets implies an upside of 4.5%.



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