Geojit's research report on Godrej Consumer Products
Godrej Consumer Products Ltd (GCPL) is one of India’s leading home-grown household & personal care company. It also has presence in other countries like Indonesia, Africa, US, Middle East, among others • Revenue grew 6.8% YoY to Rs. 2,916cr in Q4FY22 driven entirely by pricing. EBITDA margin declined -380bps YoY to 17.2% due to higher commodity inflation and weak performance in Indonesia. GCPL posted Q4FY22 PAT of Rs. 384cr (-10.7% YoY).
Outlook
We expect the business to continue its growth momentum with improvement in the margins as the company has taken measured price hikes to counter inflation. Hence, we upgrade our rating to BUY on the stock with a revised target price of Rs. 878 based on 39x FY24E adj. EPS.
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