Godrej Consumer Products Ltd. share price target

Market leader in Household Insecticide (HI) business to be benefited as 82% of the total Indian Population is at Malaria transmission risk area: Around 47% of the total revenue of GCPL comes from Home Insecticide (HI) business, having higher net contribution than other segments of GCPL; which comprises around 50% of the total market share. The penetration of HI products is at very low level of 28% to 30% in rural India & approximately 82% of the total Indian population lives in malaria transmission risk area. We expect the HI business to grow at CAGR of 15% from FY16E to FY18E.

Q FY16 results. Consolidated topline grew by 5.7% in Q3 to `2353.5crs. India business grew by 8% to `1260.7crs crs. with growth coming in across the...

GCPLs 3QFY16 results were below estimates. Revenues grew by 5.4% YoY to Rs 23.6bn (vs. our est. of Rs 24.9bn), whereas APAT increased by 19.7% YoY to Rs 3.2bn (vs. est. of Rs 3.3bn).

In the domestic market, Household Insecticides grew in double digits and Soaps growth was stunted due to price cuts and subdued demand In international markets, Latin America/Africa showed strong constant currency growth,...

Background:GCPL is a leading FMCG player focussed on Home Care (39%), Personal Wash (26%), Hair Care (24%) & Others (11%). In India, GCPL's is the market leader in the INR 10bn hair dye/color with market share of ~35% & 10% market share in the INR 90bn toilet soap market. Brand portfolio is strong in the Indian & International businesses. GCPL has grown their international business through acquisitions with share of international revenues contributing 36% of consolidated revenues. International revenue share is spread out between Indonesia (45%), Africa (24%), Latam (18%), UK (12%) and Middle East (1%). GCPL recently acquired 51%...

Subdued topline growth; Net profit in line GCPL posted consolidated revenue of Rs23.5bn, a growth of 5.7% yoy, lower than our estimate of Rs24.5bn. EBITDA grew by 17.2% to Rs4.6bn (our estimate of Rs4.8bn), while consolidated net profit for the quarter increased 22.5% to Rs3.2bn, in line with our estimate. Lower topline growth was in the wake of the drop in domestic hair colour revenue and subdued international business. We estimate 11.8% and 20% CAGR in consolidated revenue and earnings through FY15-18E and maintain our BUY recommendation with revised Target Price of Rs1,380....

GCPLs revenue grew by 9.0% YoY to Rs 22.4bn (vs. our estimate of Rs 23bn). The key positives were: (1) Volume growth in the domestic market was 9%, despite the current demand scenario, (2) Gross margin (GM) expanded by 470bps, benefitting from low input costs, (3) EBITDA margin expanded by 160bps to 18.1%, (5) Household insecticides (HI) and hair colour segments maintained double-digit growth momentum

Revenue growth, though strong, was slightly below our/consensus expectations In the domestic market, Household Insecticides and Hair Care grew in double digits and Soaps growth was stunted due to price cuts and subdued demand...

Background:GCPL is a leading FMCG player focussed on Home Care (39%), Personal Wash (26%), Hair Care (24%) & Others (11%). In India, GCPL's is the market leader in the INR 10bn hair dye/color with market share of ~35% & 10% market share in the INR 90bn toilet soap market. Brand portfolio is strong in the Indian & International businesses. GCPL has grown their international business through acquisitions with share of international revenues contributing 36% of consolidated revenues. International revenue share is spread out between Indonesia (45%), Africa (24%), Latam (18%), UK (12%) and Middle East (1%). GCPL recently acquired 51%...

Godrej Consumer Products' (GCPL) consolidated net sales for 2QFY16 grew 9.5% to Rs22.4bn lower than our estimate of Rs23.1bn. While the domestic business reported 9% growth in the topline, international business grew higher by 15% on constant currency basis. EBITDA came in at Rs4bn, while consolidated net profit grew by 22.4% and stood at Rs2.9bn vs. our estimate of Rs3bn. The stock is currently trading at 32.6x FY17E earnings. We retain our HOLD recommendation on the stock with a revised Target...