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Last Updated : Mar 09, 2020 12:39 PM IST | Source: Moneycontrol.com

Buy Godrej Consumer Products Limited target of Rs 865: Sharekhan

Sharekhan is bullish on Godrej Consumer Products Limited has recommended buy rating on the stock with a target price of Rs 865 in its research report dated March 06, 2020.

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Sharekhan's research report on Godrej Consumer Products Limited


Coronavirus outbreak has driven up demand for small soaps, hand-wash and hand sanitisers; Godrej Consumer Products (GCPL) will benefit from higher demand of sanitisers and soaps in Q4. The company had hiked soap prices by 5%, which will drive value growth in the category; HI category has been recovering over past two quarters. Management expects demand to recover gradually by Q1FY2021 led by a good rabi crop and government efforts to boost rural consumption. This along with a recovery in demand for HI and good response to new products will help sustain volume growth at 7-9%.


Outlook


Stock has corrected by ~19% from recent highs and trades at 33.7x its FY2021E and 28.5x its FY2022E earnings; we maintain a Buy on the stock with an unchanged PT of Rs. 865.


For all recommendations report, click here


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First Published on Mar 9, 2020 12:39 pm
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