After Marico, FMCG company Godrej Consumer Products released a disappointing quarterly update, sending the stock down 5% on October 6. The company forecast 3-year sales as the FMCG sector continued to soften in the quarter.

The shares were trading at Rs 850.20 per share on the BSE at 11:10 am, down 5.14%, while the benchmark Sensex was at 58,508.33, up 442.86 points or 0.76%.

In India, the company expects high-single-digit sales growth. “Meanwhile, in Indonesia, we expect early-stage constant currency sales to decline by double-digits due to lower post-COVID-19 hygiene performance and hygiene comparators from a larger base. We expect sales to approach high single digits growth (excluding hygiene products),” the company said in a stock exchange filing.

Godrej Consumer continues its growth momentum in key countries such as Africa, the United States and the Middle East (GAUM).

In terms of profitability, the company expects EBITDA to decline in the mid-10s due to the depletion of high-cost materials, significant upfront marketing investment driving the category and weak performance in Indonesia. However, Goldman Sachs has a buy rating of Rs 1,100 per share. “We see the company as a strong transition candidate. Home care growth has improved in India, and Indonesia is showing early signs of recovery,” it said.