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Last Updated : May 17, 2020 09:28 PM IST | Source: Moneycontrol.com

Buy Godrej Consumer Products target of Rs 630: Sharekhan

Sharekhan is bullish on Godrej Consumer Products has recommended buy rating on the stock with a target price of Rs 630 in its research report dated May 13, 2020.

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Sharekhan's research report on Godrej Consumer Products


Q4FY2020 consolidated revenues declined by 12.2% and adjusted PAT fell by ~30%, affected by supply disruptions in India and Africa due to a lockdown; Indonesia business registered stable performance. April began on positive note with household insecticide (HI) sales growing in India and Indonesia on account of higher demand; with capacity utilisation improving to 75% in all plants in India the company expects supply of products to stabilise in the coming months. Resurgence of HI category; expanding other key categories through innovation and cost control measures would help GCPL clock steady earnings growth in the medium term. Stock has corrected by ~16% in last three months and is currently trading at discounted valuation of 30.6x its FY2022E earnings factoring in near-term uncertainties.


Outlook


We maintain our Buy recommendation with revised PT of Rs. 630.


For all recommendations report, click here


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First Published on May 17, 2020 09:28 pm
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