Buy Godrej Consumer; target Rs 480: Firstcall Research

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Buy Godrej Consumer; target Rs 480: Firstcall Research

Firstcall Research is bullish on Godrej Consumer Products and has recommended buy rating on the stock with a target price of Rs 480 in its November 02, 2011 report.

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Firstcall Research is bullish on Godrej Consumer Products and has  recommended buy rating on the stock with a target price of Rs 480 in its November 02, 2011 report.

"Godrej Consumer Products has posted a rise of revenue for the quarter ended Sep 2011. During the quarter, consolidated net profit of Rs1310.00 million for the quarter ended Sept. 30, 2011 as compared to Rs.1310.50 million for the quarter ended Sept. 30, 2010, reflecting marginal decrease of 2.56%. Net sale for the quarter is surged by 23.55% to Rs.11918.90 million as compared to Rs.9647.30 million same quarter previous year. Total income has increased from Rs 9721.60 million for the quarter ended Sept. 30, 2010 to Rs.12079.60 million for the quarter ended Sept. 30, 2011, representing increase of 23.23%."

"Godrej Consumer Products Ltd has declared an Interim dividend @ Re. 1/- per share (100% on the shares of the face value of Re. 1/- each) for the financial year 2011-2012. Godrej Consumer Products Ltd has completed the acquisition of 51% stake in Darling Group in South Africa and Nigeria. The acquisition of 51% stake in Darling Group in Mozambique. Darling Group is a market leader in hair extension products in the African continent."

"At the current market price of Rs. 425.00, the stock is trading at 23.09 x FY12E and 19.78 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.18.41 and Rs.21.49 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 40% and 27% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 16.34 x for FY12E and 13.76 x for FY13E."

"Price to Book Value of the stock is expected to be at 5.79 x and 4.48 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs.480.00 for Medium to Long term investment, says Firstcall Research report.

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To read the full report click on the attachment