Emkay Global Financial has given Hold recommendation for Godrej Consumer Products with a target price of Rs. 920 in its research report issued on Dec 20, 2021
Emkay Global Financial’s report on Godrej Consumer Products
At its analyst meet, GCPL MD & CEO Sudhir Sitapati presented a refreshed strategy. Management aims to achieve double-digit volume growth on the back of category development and penetration gains. GCPL will focus more on core, with fewer but bigger innovations, more global collaboration and higher investments for category development. However, it highlighted a cautious outlook in the short term due to unprecedented inflation and lower volume growth. Management’s steps appear to be in the right direction, but given near-term pressure on earnings, we see limited upside potential.
Maintain Hold with a TP of Rs920 (40x Dec-23 EPS).