Fwd: Godrej Consumer Products Q2FY12 Result Update; Core remains strong. forex impacts; Accumulate; Target Price: Rs 446

[Deepak Vaishnav]

 

Godrej Consumer Products

Core remains strong… forex impacts

 

ACCUMULATE

 

CMP: Rs 404                                       Target Price: Rs 446

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n     Godrej Consumer’s (GCPL) consolidated revenue grew 24% yoy to Rs 12 bn, in line with our estimates.  However, forex loss restricted APAT growth to 4%, below our estimates

n     Domestic growth remained strong at 24% yoy – HI at 29% and soaps at 32%. Continued input costs pressure resulted in standalone EBITDA margin contraction of 220bps

n     International revenue growth of 24% yoy - Megasari at 24% and South-Africa at 48%. Favourable sales mix with prudent cost management resulted in 200bps margin expansion

n     Downward revise our FY12E EPS by 8% to Rs 17.8 and FY13E EPS by 6% to Rs 22.3 – Maintain ACCUMULATE rating on the stock with revised target price of Rs 446/share   

 

Regards,

Pritesh Chheda

Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email: pritesh...@emkayglobal.com

Board No. : +91- 22- 6612 1212 | Extn. : 273 | DID : +91-22- 6612 1273 | Mob : +91 98208 07241

 

 

Sweta Jain
Research Analyst | Emkay Global Financial Services Ltd. | www.emkayglobal.com | Email : sweta...@emkayglobal.com
Board No. : +91-22-6612 1212 | Extn. : 479 | DID : 6624 2479 | Mob : +9198923 17596 |