Accumulate Godrej Consumer Products - Emkay

Godrej Consumer Products
Reco: ACCUMULATE
CMP: Rs 419
Target Price: Rs 446

Both Gains & Offsets, Retain ACCUMULATE

- Strong performance by Godrej Consumer (GCPL) in Q3FY12 - consolidated revenue up 36% YoY to Rs 13.5 bn and APAT up 41% yoy to Rs1.7 bn – Ebidta margin expand 290 bps

- All round growth – India operations grew 20% yoy– Home Insecticide +30% and soaps +31%. Whereas, International Operations grew 67% - Local currency growth at 20% yoy

- Positive surprise in Ebidta margins and category performance offset by 5% equity dilution; Downgrade earnings by 7% to Rs20.7/Share for FY13E

Like company's focus on its core portfolio with a strong growth profile, both local and international. Maintain ACCUMULATE rating with target price of Rs 446/share.

Source : Equity Bulls

Keywords