While COVID-19 provides an opportunity for a turnaround, the company needs better execution for it, the brokerage has said.
Godrej Consumer Products share price climbed about 2 percent in the morning trade on BSE on July 17 after global brokerage firm CLSA maintained 'outperform' call on the stock with a target price of Rs 715.
As per CNBC-TV18, CLSA expects Godrej Consumer's sales and earnings CAGR at 8 percent and 13 percent during FY20-23.
While COVID-19 offered an opportunity for the turnaround, the company needed better execution, CLSA said.
Godrej Consumer Products has extended its hygiene portfolio to cover personal, home, and kitchen categories to cater to the increasing demand for these products amid the coronavirus outbreak
The company has launched 14 products, including soaps, face masks, fruit veggie wash and dish wash, under three broad hygiene categories.
After manufacturing its first soap in 1918 during the Spanish Flu pandemic, becoming the first firm in the world to produce soap using vegetable oil instead of animal fat, Godrej Consumer Products is looking at 2020 as its "second beginning", company's executive chairperson Nisaba Godrej has said.
Godrej described COVID-19 pandemic as "health, humanitarian and economic crisis of epic proportions to contend with" for which the business would "need to do more of what we do and do it even better" while addressing shareholders in the annual report for 2019-20.
Read more: COVID-19 pandemic: Godrej Consumer sees 2020 as 'second beginning' for company
Leading FMCG players such as ITC, Godrej, Dabur, Emami and Marico are witnessing robust sales in rural and semi-urban markets, bolstering hopes of a speedy recovery from the impact of the COVID-19 crisis.
At 1005 hours, Godrej Consumer Products shares were trading 1.46 percent higher at Rs 704.35 on BSE .
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