AgenciesRelated
ICICI Direct has given buy rating to Godrej Consumer Products with a target price of Rs 815. The share price moved up by 0.16 per cent from its previous close of Rs 706.30. The stock’s last traded price is Rs 707.40.
Godrej Consumer Products Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 72282.88 Crore) operating in FMCG sector.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 2311.17 Crore, up 8.37 % from last quarter Sales of Rs 2132.69 Crore and down -.83 % from last year same quarter Sales of Rs 2330.59 Crore. The Company reported net profit after tax of Rs 395.26 Crore in latest quarter.
Investment Rationale
Among FMCG stocks, which have shown relative underperformance in the recent market move, Godrej Consumer has shown significant accumulation in its price distribution pattern. Stock daily returns are largely distributed from 0-2%. However, considering the volatility, the right tail is significantly longer than the left tail indicating buying at every decline in the stock.From a delivery perspective, despite profit booking seen in early September, no major delivery activity was seen. After a brief consolidation, the Z score has started turning positive suggesting buyers accumulating the stock at lower levels. With the recent surge in Z score, fresh buying is evident.
Promoter/FII Holdings
Promoters held 63.2 per cent stake in the company as of June 30, 2020, while FIIs held 26.8 per cent, DIIs 3.2 per cent and public and others 6.8 per cent.
Godrej Consumer Products Ltd., incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 72282.88 Crore) operating in FMCG sector.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 2311.17 Crore, up 8.37 % from last quarter Sales of Rs 2132.69 Crore and down -.83 % from last year same quarter Sales of Rs 2330.59 Crore. The Company reported net profit after tax of Rs 395.26 Crore in latest quarter.
Investment Rationale
Among FMCG stocks, which have shown relative underperformance in the recent market move, Godrej Consumer has shown significant accumulation in its price distribution pattern. Stock daily returns are largely distributed from 0-2%. However, considering the volatility, the right tail is significantly longer than the left tail indicating buying at every decline in the stock.From a delivery perspective, despite profit booking seen in early September, no major delivery activity was seen. After a brief consolidation, the Z score has started turning positive suggesting buyers accumulating the stock at lower levels. With the recent surge in Z score, fresh buying is evident.
Promoter/FII Holdings
Promoters held 63.2 per cent stake in the company as of June 30, 2020, while FIIs held 26.8 per cent, DIIs 3.2 per cent and public and others 6.8 per cent.