Godrej Industries - Latin Manharlal Securities

INVESTMENT POSITIVES
- Positives weigh more than negatives - though FMCG companies feeling the pinch…
- Product price rise on cards at GCPL - to offset high input cost and currency depreciation
- 2Q12 & 1H12: Excellent set of numbers – all verticals doing extremely well
- Oleochemicals Business – Steady growth supported by high capacity utilizations and growing contribution from specialty chemicals
- Godrej Agrovet Ltd– impressive growth across all segments
- Godrej Properties Ltd – quite an eventful quarter

OUTLOOK AND VALUATION

At the CMP of Rs.178.50, the stock is trading at 11.8x its FY13E EPS of Rs.15.05. We recommend BUY on the stock with a 12¬18 months target price of Rs.250, providing an upside of 40% from the current levels.

The Godrej Industries stock closed the day at Rs.177.15, down by Rs.1.20 or 0.67%. The stock hit an intraday high of Rs.181 and low of Rs.176.45.

The total traded quantity was 0.39 lakhs compared to 2 week average of 0.93 lakhs.

Source : Equity Bulls

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