Godrej Consumer Products by admin- Tuesday, September 28th, 2021 05:05:18 PM
We hold Buy on Godrej Consumer Products Limited (GCPL) with the revised PT of Rs. 1,249. The inventory is currently trading at 44x/39x its FY2023E/FY2024E EPS, cut price to a number of the large peers.
The company is specializing in growth levers which includes 1) improving penetration of aerosols/liquid vapourisers in household insecticide (HI); 2) regaining lost marketplace share in wet-wipes via competitive pricing; and three) gaining scale in hygiene to power double-digit sales boom in Indonesia.
India enterprise is predicted to grow in double digits with all key classes (together with soaps and HI) predicted to report double-digit sales growth in FY2022.
Raw-fabric inflation will hold to place stress on margins within the near time period. Calibrated rate hikes and working efficiencies would help in mitigating cost pressures.