godrej consumer products: Navratri Special from Religare Broking: Godrej Consumer Products is a long-term buy; likely to hit Rs 1,100 mark
Day 7:
Target Rs 1178
LTP Rs 910
Upside 29%
Godrej Consumer Products (GCPL) is part of the 124-year-young Godrej Group. The company operates under categories such as household insecticides, personal wash, hair care and air care.
They have a strong presence in 3 emerging markets such as Asia, Africa, and Latin America and serves nearly 1.2bn consumers.
GCPL has a strong presence in domestic as well as international markets and India’s business dominates by earning ~56 per cent of revenue while the remaining 44 per cent is from international business.
The company has a consistent track record of introducing new products and categories as per consumer preferences over the years.
Moreover, its focus on distribution networks, premiumization of products, increasing brand visibility, gaining market share and maintaining leadership in categories would augur well for future growth.
On the financial front,
Broking has estimated its revenue/PAT to grow at a CAGR of 15%/24% over FY22-24E.
From a long-term perspective, the domestic brokerage firm is positive on GCPL and has a buy on the stock with a target price of Rs 1,178 in the next 12 months.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
