Exclusive Webinar :Gain complete knowledge about how you can invest in global markets during an insightful webinar on April 16 at 11 am. Register Now!

Buy Godrej Consumer Products: target of Rs 850: Sharekhan

Sharekhan is bullish on Godrej Consumer Products has recommended buy rating on the stock with a target price of Rs 850 in its research report dated March 25, 2021.

March 26, 2021 / 11:56 AM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Godrej Consumer Products


Demand stayed buoyant in January-February unaffected by local lockdowns and supply disruptions; Q4FY21 will see yet another quarter of double-digit revenue growth; rise in input costs will be mitigated by efficiencies and by leveraging upon higher margins in other geographies. Key long term triggers for GCPL’s India business 1) Improving penetration of Hand wash and emerging categories such as floor cleaners/toilet cleaners 2) Improving penetration of HI in rural markets through new product launches and rising caution amongst consumer and 3) market share gains in core categories such as soaps and hair colour. Globally, Indonesia would recover strongly in FY22; company focusing on achieving profitable growth in LatAm and new leadership is eyeing sustainable revenue growth with margins improving to 17-18% in medium term.




Outlook


GCPL is set to achieve CAGR growth of 10% and 17% in revenue and PAT over FY2020-23. Stock trades at 30x its FY2023E EPS, at a discount to historical valuations. We maintain Buy with an unchanged price target of Rs. 850.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Mar 26, 2021 11:56 am

stay updated

Get Daily News on your Browser
Sections