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Godrej Consumer Products |
Status Quo, Maintain Accumulate |
ACCUMULATE
CMP: Rs 375 Target Price: Rs 447
n We met the management of Godrej Consumer – foresee continuation of growth momentum and no change in growth assumptions and resultant earnings estimates
n Much publicized cost pressures are restricted to Soaps segment alone – also productivity and efficiency gains would keep Ebidta margins unchanged at 18% for FY11E and FY12E
n New growth drivers (recent acquisitions) are reporting some acceleration in growth momentum; erstwhile drivers like domestic business are heading for breather
n 17% price correction from Rs441/Share to Rs369/Share unwarranted - Maintain ‘ACCUMULATE’ rating with target price of Rs447/Share
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