The 15 reports from 5 analysts offering long term price targets for Godrej Consumer Products Ltd. have an average target of 739.67. The consensus estimate represents an upside of 5.35% from the last price of 702.10.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-09-16||Godrej Consumer Prod..||Sharekhan||707.40||850.00||707.40 (-0.75%)||21.07||Buy|
Household Insecticides will maintain good run in domestic market led by share gains and better penetration in rural markets; soaps regained growth momentum on improved supply and strong traction in key brands. Africa has recovered from lows with the region quickly exiting the pandemic situation; operational performance to be better in Q2. New leadership's focus on driving growth through faster innovations, cross pollination and shortening working capital cycle augurs well. Godrej Consumer Products (GCPL) clocked relatively better numbers in Q1FY2021...
|2020-09-14||Godrej Consumer Prod..||Motilal Oswal||706.20||706.20 (-0.58%)||Strategy Note|
14 September 2020 Indonesia posted healthy 17% EBITDA (adj.) growth to INR4.5b. Conversely, India EBITDA (adj.) fell 4.2% to INR14.2b and GAUM EBITDA (adj.) declined 14.6% to INR2.4b. Declines in India and GAUM were primarily attributable to the advent of COVID-19 in 4QFY20. For the first three quarters of FY20, India witnessed (adj.) EBITDA growth of 2% to INR11.2b, while GAUM EBITDA (adj.) remained flattish at INR2.
|2020-08-10||Godrej Consumer Prod..||Geojit BNP Paribas||684.60||741.00||684.60 (2.56%)||5.54||Hold|
|2020-08-05||Godrej Consumer Prod..||HDFC Securities||677.20||628.00||677.20 (3.68%)||10.55||Sell|
Gujarat Gas: Our ADD recommendation on Gujarat Gas (GGL) with a price target of INR 326 is premised on (1) volume growth of 20% CAGR over FY21-23E, (2) portfolio of mature, semi-mature and new geographical areas (GAs) and (3) compelling valuations among the city gas distribution players (RoE of 27% in FY22E versus 20% for peers - Indraprastha Gas and Mahanagar Gas). 1QFY21 EBITDA/APAT was 26/49% below estimates, primarily owing to 31% lower volumes at 4.1mmscmd, offset by 7% higher per unit EBITDA margin. Godrej Consumers: GCPLs 1QFY21 was broadly in line with revenue/EBITDA growth of -1/3% YoY. Domestic revenue/EBITDA growth was at +5/+22% YoY, while international revenue/EBITDA growth was -8/-36% YoY. Domestic revenue growth was led by HI (27% YoY), while soaps surprised with a 2% YoY decline (HSIE +7%). Hair colours remained weak and declined by 18% YoY. Within international, GUAM was heavily impacted (-23% YoY) by lockdowns while Indonesia maintained a healthy pace (+5% YoY), driven by HI. GCPL continued to drive penetration through innovative launches, and the company launched 45 new products in its hygiene portfolio. We expect HI and hygiene portfolio to sustain healthy growth while discretionary/OOH will be muted in FY21. We maintain our EPS estimates for FY21/FY22/FY23. We value GCPL at 35x P/E on Jun-22E EPS and derive a target price of Rs 628. Maintain REDUCE.
|2020-08-04||Godrej Consumer Prod..||Motilal Oswal||677.20||665.00||677.20 (3.68%)||Target met||Neutral|
4 August 2020 Godrej Consumers (GCPL) 1QFY21 earnings were in line. Household Insecticides (HI) sales were better than expectations. However, Soaps disappointed with 2% YoY sales decline, despite a favorable environment. Gross margins were below expectations due to an adverse mix. A sharp 46% YoY cut in ad-spends meant that EBITDA was slightly ahead of expectations. We do not see any visibility for the single-digit EPS trajectory of the past 5 years to change materially any time soon. RoCE at less than 20% is also much lower than peers and is unlikely to improve materially over the next few years. Thus, valuation of 40.5x FY22E seems fair. EBITDA grew 3% YoY to INR4.7b (v/s est.
|2020-05-26||Godrej Consumer Prod..||Geojit BNP Paribas||633.80||665.00||633.80 (10.78%)||Target met||Buy|
Geojit BNP Paribas
We expect next few quarters to remain challenging owing to COVID-19. However, with the rising market share for key products, new partners, channel dynamics, cost optimization efforts and current upside potential, we upgrade our rating to BUY on the stock with a revised target price of Rs. 665 based on 35x FY22E adj. EPS. Revenue declines on lower volumes In Q4FY20, revenue slipped 12.2% YoY (-11.0% CC) to Rs. 2,154cr, negatively impacted by the disruption caused by COVID-19. India business was severely impacted...
|2020-05-13||Godrej Consumer Prod..||Sharekhan||537.55||630.00||537.55 (30.61%)||Target met||Buy|
Godrej Consumer Products Limited's (GCPL)'s Q4FY2020 performance was affected by supply disruption in the Africa and India businesses owing to the lockdown from March-end till April 2020. GCPL's consolidated business revenues and PAT declined by ~12% and 27% respectively in Q4FY2020. India revenues declined by 18%, while those of the African business declined by 16%. Indonesia didn't have any major impact of COVID-19 and posted constant currency sales growth of 6%. High input prices and lower operating leverage led to 151 bps decline in OPM to 22.3%. There was some recovery in...
|2020-05-13||Godrej Consumer Prod..||Motilal Oswal||564.45||535.00||564.45 (24.39%)||Target met||Neutral|
13 May 2020 Godrej Consumers (GCPL) 4QFY20 results, while in line, offers no spark of structural revival. Similarly, management commentary also does not show any significant optimism on the companys modest earnings growth trend (at 9.8% CAGR between FY15-20E) improving over the next two years. With RoCE at ~16% in FY20 is significantly lower than peers and unlikely to increase sharply in the next two years. Thus, valuations of 33.2x FY22E EPS appear fair making us continue our on the stock. consolidated net sales declined 12.2% YoY to INR21.5b (v/s est. EBITDA declined 17.8% YoY to INR4.8b (v/s est.
|2020-04-21||Godrej Consumer Prod..||LKP Securities||531.15||531.15 (32.18%)||Buy|
Best in class Management Bandwidth and Metrics seeing slow growth despite being a 20% ROE business. Unique Ayurveda Platform with extensive distribution reach yet very pricey at PEG of 4x 30% ROE business providing essentials backed by a huge distribution network facing short term supply chain headwinds 20% ROE business with close to 45% international revenues under-owned by Domestic Fund Houses...
|2020-02-07||Godrej Consumer Prod..||Geojit BNP Paribas||646.80||710.00||646.80 (8.55%)||Target met||Hold|
Geojit BNP Paribas
Considering the medium-term impact of economic slowdown, rising costs and low discretionary spending, we maintain our HOLD rating on the stock and roll forward our PE multiple to 35x FY22E adj. EPS to...
|2020-01-29||Godrej Consumer Prod..||Motilal Oswal||683.50||766.00||683.50 (2.72%)||9.10||Neutral|
29 January 2020 GCPLs results, albeit in line, indicate no spark of revival. Similarly, management commentary does not express any significant optimism that the modest earnings growth trend for five years now (11.2% CAGR over FY15-20) will be any different for the next two years. With RoCE at ~17% in FY20 also significantly lower than peers and unlikely to increase sharply over the next two years, valuations of 38.7x FY22E EPS appear fair. We thus maintain our stance on the stock. Lower prices in soaps and hair colour resulted in 2% sales growth despite (-50bp YoY) and staff costs (-40bp YoY) were offset by higher other expenses (+130bp YoY). EBITDA margin expanded by 10bp YoY to 22.7%. 9MFY20, Revenue declined 1.3%, while EBITDA/PAT was up 3.9%/6.3%.
|2019-12-06||Godrej Consumer Prod..||Sharekhan||658.05||865.00||658.05 (6.69%)||23.20||Buy|
The number of dengue cases has increased considerably in 2019 due to rising temperature, which promotes mosquito breeding. More than 67,000 people have been diagnosed with dengue this year across India. Excessive rain, flooding and poor sanitation have also led to multiple dengue cases, especially in Bihar, Maharashtra, West Bengal and Gujarat. This will result in higher demand for Household Insecticides (HI) products in the domestic market (especially out of home creams/gels). Further, the threat of illegal incense sticks has been gradually receding as the government is taking stringent regulatory measures...
|2019-11-15||Godrej Consumer Prod..||Geojit BNP Paribas||710.65||758.00||710.65 (-1.20%)||Target met||Hold|
|2019-11-06||Godrej Consumer Prod..||Sharekhan||732.60||865.00||732.60 (-4.16%)||23.20||Buy|
Godrej Consumer Products (GCPL) registered decent operating performance in Q2FY2020. Consolidated revenue stood flat at Rs. 2,608.2 crore while benign input prices aided in 362 BPS improvement in OPM. Operating profit grew by 18% during the quarter. The domestic volume growth stood at 7% better than 5% volume growth achieved in Q1FY2020 (the soaps category volumes witnessed little higher than mid-single digit growth). Household Insecticide (HI) posted recovery in performance with 4% growth (driven by high-single-digit volume growth). Indonesia business continues to perform well with double-digit...
|2019-08-21||Godrej Consumer Prod..||Way2Wealth||613.40||613.40 (14.46%)||Hold|
INDIA Indian operations growth was flat in Q1FY20 to `1290 crs vs `1279 crs in Q1FY19. India business volume grew by 5% Y-O-Y, driven by new product launches, effective marketing campaigns, and consumer offers. EBIDTA for India operation grew by 7.1% Y-O-Y to `309crs in Q1FY20. Margins expanded by 150 bps to 23.5% vs. 22%. The contraction in employees and advertisement expenses aided margin...
|2019-08-19||Godrej Consumer Prod..||Geojit BNP Paribas||626.10||656.00||626.10 (12.14%)||Target met||Hold|
Geojit BNP Paribas
We maintain our HOLD rating on the stock with a revised target price of Rs. 656 based on 34x FY21E adj. EPS. Topline numbers affected by divestment in International business GCPL's Q1FY20 revenue declined 5.1% YoY to Rs. 2,349cr owing to a 10.9% YoY fall in international revenue (45.3% of total revenue), and a lacklustre growth in the Indian market (+0.4% YoY with 5% volume growth; 56.7% of total revenue). International revenue was impacted by divestment of its Europe business in Q2FY19 (+3% YoY adjusted for divestment) and FX headwinds (+9% YoY adjusted for divestment and at...
|2019-08-01||Godrej Consumer Prod..||Sharekhan||611.75||650.00||611.75 (14.77%)||Target met||Hold|
Godrej Consumer Products (GCPL), Q1FY2020 was yet another muted quarter as consolidated revenue and PAT declined by ~4% and ~3%, respectively. Domestic business volume grew by 5%; largely driven by better sales volumes in soaps and new launches. The domestic household insecticides (HI) segment continues to disappoint, as revenue declined ~4%. International business was affected by unfavourable currency movements. Steps taken to revive the performance of the HI category will take time. We maintain our...
|2019-08-01||Godrej Consumer Prod..||Motilal Oswal||603.55||620.00||603.55 (16.33%)||Target met||Neutral|
1QFY20 cons. net sales were down 5.2% YoY to INR23.5b (v/s est. INR25.5b). Consol. EBITDA was up 2.2% YoY to INR4.6b (v/s est. INR4.4b), while Adj. PAT was down 6.7% YoY to INR3b (v/s est. INR3b), adjusted for deferred tax gain of INR1.1b. Net profit without exceptions and one-off items declined 3% YoY (according to the press release). India branded business volume grew 5%. Sale of Soaps was up 3% YoY; Household Insecticides was down 4% while the Hair Color business sales stood flat YoY. Management attributed the subdued performance to general...
|2019-07-01||Godrej Consumer Prod..||Sharekhan||674.20||734.00||674.20 (4.14%)||Target met||Hold|
We interacted with the management of Godrej Consumer Products (GCPL) to understand its current business environment and performance of key categories (including household insecticides [HI] and soaps) in the domestic market and growth in international markets such as Africa and Indonesia. Recent price cut in soaps would help boost sales volumes, while HI will take some time to get back on track. Globally, the African and...
|2019-06-14||Godrej Consumer Prod..||Motilal Oswal||663.50||700.00||663.50 (5.82%)||Target met||Neutral|
Despite muted growth of the past three years, we believe GCPL's domestic business is of high quality with attractive long-term growth prospects. It should grow faster on expected recovery in demand environment, traction on new products (also significantly margin accretive), and better utilization of expanded distribution (now at ~6m outlets, direct reach of ~1.3m outlets).