Sharekhan has given Buy recommendation for Godrej Consumer Products with a target price of Rs. 1150 in its research report issued on Feb 08, 2022

Sharekhan’s research report on Godrej Consumer Products

Godrej Consumer Products Limited’s (GCPL) Q3FY2022 performance was largely in-line with expectation with consolidated revenue growing ~8% to Rs. 3,302.6 crore, while raw-material inflation led to moderate 4.4% growth in PAT to Rs. 517.1 crore (OPM down by 211 bps to 21.2%). India, Africa, and LATAM businesses registered 8%, 13%, and 10% y-o-y growth, respectively. Indonesia posted flat performance reeling under macro headwinds. GCPL aims to achieve double-digit revenue growth through penetration improvement, market share gains, steady consumption environment, and innovation; Targeting OPM expansion through better mix and cost-saving measures in the medium term.

Outlook

The stock has underperformed compared to its peers and broader indices and trades at attractive valuation of 39.7x/34.3x its FY2023E/FY2024E EPS. We maintain Buy with a revised PT of Rs. 1,150.

More Info on Godrej Consumer Products

At 17:30 Godrej Consumer Products was quoting at Rs 833.15, up Rs 7.85, or 0.95 percent.

It has touched an intraday high of Rs 840.00 and an intraday low of Rs 826.60.

It was trading with volumes of 9,427 shares, compared to its thirty day average of 31,239 shares, a decrease of -69.82 percent.

In the previous trading session, the share closed up 1.57 percent or Rs 12.75 at Rs 825.30.

The share touched its 52-week high Rs 1,138.50 and 52-week low Rs 644.00 on 03 September, 2021 and 24 February, 2021, respectively.

Currently, it is trading 26.83 percent below its 52-week high and 29.35 percent above its 52-week low.

Market capitalisation stands at Rs 85,196.34 crore.

 

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