Godrej Consumer Products Ltd. share price target

Godrej Consumer Products (GCPL) result was better than our estimates. Africa continues to positively surprise with +30% YoY revenue growths while Indonesia grew 5%YoY (on a stable base). India business also posted strong revenue growth led by continued momentum in soap portfolio (+41%YoY) and strong recovery in hair color (+25%) and HI business (+34%). Operating profit margins contracted due to input cost inflation and higher operating costs. Appointment of Mr. Sudhir Sitpati (from HUL) as MD and CEO is very positive as GCPL is likely to be benefited of his category management and marketing skills. We maintain our revenue estimates. Our EPS estimates are revised...

Mr. Sitapati comes with impressive experience in heading HUVR's F&R; business and as part of the senior management team in the Detergents business, which have done very well under his tenure and where marketing campaigns in both segments have had a high value impact. His appointment as MD and CEO for five years, as well has his relative young...

Godrej Consumer Products (GCPL) result was better than our estimates. Africa continues to positively surprise with strong double digit revenue growth. India business also remained on strong footing driven by continued double digit revenue growth momentum in soap portfolio and strong recovery in hair color (grew 14% YoY vs -5%YoY growth in 2QFY21). Revenue growth in House Hold Insecticide segment remained healthy at 7%YoY. Overall, GCPL continues to benefit from health and hygiene tailwind. Gross margins contracted due to inflationary raw material prices, however strict cost control led to EBITDA Margins being flat YoY. We revise our FY21-23 EPS estimates...

Overall sales growth was in line with our expectation. While sales in Soaps and the Africa business was healthy, the same in Household Insecticides (HI) disappointed for the second consecutive quarter. Macroeconomic worries are affecting performance in Indonesia. While FY21 initially promised to be stellar due to favorable outlook for Soaps, Hygiene products and HI, it now seems barely likely to cross double-digit growth despite a weak base in FY20. In its analyst meet in Dec'20, the company indicated that more work needs to be undertaken for all-round growth....

VENTURA DIWALI PICKS 2020

Gross margins dropped 61bps YoY to 56.0% impacted by higher operating cost. However, EBITDA rose 18.7% YoY, with EBITDA margins expanding 160bps YoY to 23.5%, supported by strong growth across the segments and lower selling and general expenses. Resultantly, adjusted...

Godrej Consumer Products (GCPL) result was in-line with our estimates. Revenue from soaps portfolio grew at high double digit rate while Hair Color recovered strongly compared to revenue growth of previous two quarters. However, performance of Household Insecticide segment was impacted by 20 days regional lockdown of manufacturing facility in Guwahati. In international business while revenue growth in Africa recovered strongly at double digit rate (after 5 quarter of decline), performance of Indonesia business declined (vs 1QFY21) due to COVID impact and down stocking by modern retailers. We expect growth rate in HI and Hair Color to improve going forward...

83% of the company's portfolio, related to health, hygiene and value for money, delivered 17% sales growth during the quarter. HI category posted mere 4% growth, was a negative surprise, especially considering 22% growth reported by Jyothy Lab in the same segment. We have upward revised our FY21E and FY22E EPS at Rs 17.1 and Rs 18.3, respectively and introduced FY23E EPS estimate at Rs 19.6. We believe that the recent correction in the price makes the stock attractive at CMP. Valuing GCPL at 38x FY23E earnings to arrive at a TP...

Godrej Consumer Products Limited's (GCPL) revenue grew by ~11% to Rs. 2,915.1 crore with India and international business growing by 11% and 12%, respectively. Domestic soaps category reported strong double-digit growth; household insecticide growth moderated to 4% due to supply disruption. On the international front, Africa and Indonesia grew by 10% and 5%, respectively, during the quarter. HI growth is expected to rebound due to higher consumer demand, while soap...

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...