Godrej Consumer Products Ltd - Q1 FY22 Result Update - YES Securities

(Rating: ADD, TP: Rs1,099 Upside 12.6%)

- View - We are rolling our valuations to FY24E and building in a 10%/12%/13% revenue/EBITDA/PAT CAGR over FY21-24E. We reiterate our ADD rating with a TP of Rs 1,099, based on 45x FY24E earnings, in-line with peers like Marico, Dabur, TCPL. We continue to expect that stock returns (combination of higher growth trajectory and multiple re-rating) from the expected changes from the new leadership will be front-ended.

- Result highlights - Strong growth delivery with consolidated sales growth of 24.4%, EBITDA margin up 40bps leading to growth of 27% and PBT growth of 37%.

- India segmental growth - 15%/20% volume/value growth in India led by 14% growth in Home care and 29% in Personal care, also double-digit growth in household insecticides.

Shares of Godrej Consumer Products Ltd. was last trading in BSE at Rs. 976.85 as compared to the previous close of Rs. 988.75. The total number of shares traded during the day was 32749 in over 1849 trades.

The stock hit an intraday high of Rs. 1003 and intraday low of 971.9. The net turnover during the day was Rs. 32197632.

Source : Equity Bulls

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