Edelweiss Securities has given Buy recommendation for Godrej Consumer with a target price of Rs. 1180 in its research report issued on Dec 16, 2021

Edelweiss Securities’ report on Godrej Consumer

The Godrej Consumer (GCPL) stock has corrected about 17% from its peak. We had earlier highlighted GCPL would have a weak Q2FY22 performance in India HI, Indonesia and margins. However we believe most of these issues are transitory. GCPL will benefit from: i) recovery in demand for personal care led by rising mobility; ii) rising dengue cases, which could drive HI business, but watch out for a harsh winter; and iii) strong performance in the Africa business while corrective actions in Indonesia (aided by soft base) should also help.

Outlook

We continue to be positive on the impact of the new MD & CEO, Mr. Sudhir Sitapati. Maintain ‘BUY’ with a TP of INR1,180.

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