Buy Godrej Consumer Products; target of Rs 1110: KR Choksey

KR Choksey is bullish on Godrej Consumer Products has recommended buy rating on the stock with a target price of Rs 1110 in its research report dated February 03, 2023.

Broker Research

February 08, 2023 / 22:02 IST

26 Aug, 2025 12:21

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KR Choksey's research report on Godrej Consumer Products

GCPL reported consolidated revenue from operations of INR 35,989 mn (+9.0% YoY/ +6.1% QoQ). The underlying volume growth was 1.0% YoY. For 9MFY23, revenue from operations was INR 1,01,158 mn (+8.1% YoY). EBITDA improved by 9.8% YoY/ 33.7% QoQ to INR 7,675 mn. EBITDA margin improved by 16 bps YoY and 440 bps QoQ. For 9MFY23, EBITDA declined by 5.8% YoY to INR 18,743 mn while EBITDA margin contracted by 272 bps YoY to 18.5%. Adj. Net profit for the quarter improved by 9.1% YoY/ 43.7% QoQ to INR 5,946 mn. For 9MFY23, Adj. Net Profit declined by 7.1% YoY to INR 13,671 mn.

Outlook

We expect overall Revenue/EBITDA/Adj. PAT to increase by 10.6%/14.3%/11.3% respectively over FY22-25E. We value the company at a P/E multiple of 43.5x and its FY25E EPS of INR 25.5 and arrive at a target price of INR 1,110 per share (earlier INR 1,056 per share) with an upside of 18.2% over the CMP. Accordingly, we maintain our “BUY” rating on the shares of Godrej Consumer Products Ltd.

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