Godrej Consumer Products share price declined over 6 percent intraday on January 30 after company posted its December quarter numbers.
The company's consolidated net profit was up 5.1 percent at Rs 445.2 crore versus Rs 423.5 crore and revenue rose 2 percent at Rs 2,778 crore versus Rs 2,724 crore, YoY.
Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 3.6 percent at Rs 630.6 crore versus Rs 609 crore and margin was at 22.7 percent versus 22.3 percent, YoY.
Credit Suisse | Rating: Neutral | Target: Raised to Rs 680 from Rs 640 per share
The Indian growth subdued, while pace of innovation in H1 is a silver lining. The company is going to face a challenging FY21 with high cost inflation from palm oil & low revenue growth.
The soap volume growth could reverse as price hikes are taken in FY21. The company reported mixed performance by international business.
India volume growth at 7% came through a heavy price promotions.
Morgan Stanley | Rating: Overweight | Target: Rs 845 per share
The earnings missed the estimate on weaker than-expected revenue growth.
Morgan Stanley like the strategy of focusing on volume growth in weak demand environment. The narrowing volume-value growth gap hereon is going to drive earnings.
Kotak Institutional Equities | Rating: Reduce | Target: Raised to Rs 720 from Rs 715 per share
The Q3 print is weak overall despite sharp pullback in advertisement spends aiding margin. The price reductions did aid volumes but value growth remains subdued.
International performance was a mixed bag. Research house cut revenue growth and maintain EBITDA margin assumptions and also cut FY20-22 EPS forecasts by 2.5-3%.
At 11:45 hrs Godrej Consumer Products was quoting at Rs 699.15, down Rs 42.95, or 5.79 percent on the BSE.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.