Sharekhan has given Buy recommendation for Godrej Consumer Products with a target price of Rs. 850 in its research report issued on Feb 08, 2021
Sharekhan’s research report on Godrej Consumer Products
Godrej Consumer Products (GCPL) revenues grew by ~10% with India and international business growing by 11% and 10%, respectively in Q3FY2021. OPM improved by 55 bps to 23.3%. Domestic soaps and hair colour categories grew in mid-teens; household insecticide segment rose by 7%. Globally, Africa and LatAm markets posted double digit growth of 17% and 12% respectively. Domestic soaps and hair colour to maintain double-digit growth; Africa will continue to grow in double digits in the coming quarters. Margins to be broadly maintained through price hikes and stringent cost-saving measures
Outlook
We maintain earnings estimates for FY2021/22/23 as results matched expectations. We retain a Buy on the stock with unchanged PT of Rs. 850.
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