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

Reduce Godrej Consumer Products; target of Rs 699: Dolat Capital

Dolat Capital recommended reduce rating on Godrej Consumer Products with a target price of Rs 699 in its research report dated August 04, 2020.

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Dolat Capital's research report on Godrej Consumer Products


GCPL’s net sales and EBITDA came in line while APAT was ahead of our estimates. The company has reported 3% volume growth in the domestic market.  85% of the company’s portfolio, related to health, hygiene and value for money, delivered 9% sales growth during Q1.  HI category posted 27% growth, was a positive surprise, especially considering lockdown in the initial phase of the quarter.  We have maintained our FY21E and FY22E EPS at Rs 15.4 and Rs 17.3, respectively. We believe that the discretionary categories would take longer to recover compared to essential, hence hair colors would witness demand challenges, going ahead.



Outlook


We value GCPL at 40x FY22E earnings to arrive at a TP of Rs 699. Considering sharp run-up in stock price, we see limited room for further upside. Maintain Reduce. (Buy on Dips).


For all recommendations report, click here


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First Published on Aug 9, 2020 09:17 pm
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