Angel Broking is bullish on Godrej Consumer Products and has recommended accumulate rating on the stock with a target of Rs 478 in its July 25, 2011 research report.
“Godrej Consumer (GCPL) posted mixed set of numbers for the quarter. Consolidated top-line growth was strong at 39.6% yoy, led by recent acquisitions; thus, this quarter’s numbers are not directly comparable to 1QFY2011 numbers. Domestic revenue growth stood at 21% yoy, aided by full consolidation of Godrej Household Products (GHPL). Reported earnings grew modestly by 94% yoy, aided by high extraordinary income due to the settlement of Sara Lee JV termination.”
“GCPL reported strong top-line growth of 39.6% yoy to Rs997.8cr, driven largely by the consolidation of recent acquisitions. Domestic business (including GHPL’s additional 51% consolidation) registered growth of 21% yoy to Rs643cr. Soaps registered ~17% yoy growth and hair colour registered growth of 19% yoy during the quarter. International business revenue stood at Rs360cr, registering growth of 94% yoy. Reported earnings registered growth of 94% yoy to Rs239.3cr (Rs123.2cr).”
“GCPL’s recent acquisitions have been in-line with its 3X3 strategy and enable the company to spread its footprint and grow inorganically. At the CMP of Rs440, the stock is trading at 21.2x FY2013E earnings of Rs20.8. We maintain an Accumulate rating on the stock with a target price of Rs478, based on 23x FY2013E EPS,” says Angel Broking research report.
“Godrej Consumer (GCPL) posted mixed set of numbers for the quarter. Consolidated top-line growth was strong at 39.6% yoy, led by recent acquisitions; thus, this quarter’s numbers are not directly comparable to 1QFY2011 numbers. Domestic revenue growth stood at 21% yoy, aided by full consolidation of Godrej Household Products (GHPL). Reported earnings grew modestly by 94% yoy, aided by high extraordinary income due to the settlement of Sara Lee JV termination.”
“GCPL reported strong top-line growth of 39.6% yoy to Rs997.8cr, driven largely by the consolidation of recent acquisitions. Domestic business (including GHPL’s additional 51% consolidation) registered growth of 21% yoy to Rs643cr. Soaps registered ~17% yoy growth and hair colour registered growth of 19% yoy during the quarter. International business revenue stood at Rs360cr, registering growth of 94% yoy. Reported earnings registered growth of 94% yoy to Rs239.3cr (Rs123.2cr).”
“GCPL’s recent acquisitions have been in-line with its 3X3 strategy and enable the company to spread its footprint and grow inorganically. At the CMP of Rs440, the stock is trading at 21.2x FY2013E earnings of Rs20.8. We maintain an Accumulate rating on the stock with a target price of Rs478, based on 23x FY2013E EPS,” says Angel Broking research report.
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