Buy Godrej Consumer; target of Rs 1415: Edelweiss

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Edelweiss' report on Godrej Consumer ProductsWe recently met Mr. Vivek Gambhir, MD & CEO, Godrej Consumer (GCPL), and Mr. Sunil Kataria, Head of the company’s India and SAARC businesses. Mr. Gambhir is betting big on gradual urban recovery and decent rural growth (low penetration in hair colour and household insecticides). Though smaller players are returning in soaps, GCPL does not perceive them as a competitive threat as they are facing difficulty in making up for lost distribution. In our view, renewed aggression by P&G India could be slightly positive for GCPL as HUL’s and L’Oreal’s attention will divert to defending their turfs in shampoo and hair colour, respectively. A strong innovation funnel, focus on improving distribution productivity via Project E3 and benefit flowing from softer commodity prices place the company in a sweet spot."Outlook and valuations: Positive; maintain ‘BUY’"We like GCPL’s aggression in developing categories coupled with focus on improving distribution productivity. At CMP, the stock is trading at 36.9x FY16E and 30x FY17E. We maintain ‘BUY’ and rate it ‘Sector Outperformer’ with target price of INR1,415", says Edelweiss research report.For all recommendations, click hereDisclaimer: 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.

Read More