Godrej Consumer Products -Healthy performance… Maintain Accumulate :: Emkay

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Godrej Consumer Products

Healthy performance… Maintain Accumulate

ACCUMULATE

CMP: Rs 394                                       Target Price: Rs 420

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n     Godrej Consumer Products (GCPL) reported strong results, higher than our expectations – sales growth at 96.5% yoy to Rs 10 bn and APAT  at Rs 1.4 bn vs our estimate of Rs 1.3 bn

n     Strong domestic growth – soaps at 13%, hair colours at 18% and household insecticide at 17%, primarily driven by volumes

n     International business grew at 326% driven by consolidation of Megasari, Tura, Argencos and Issue Group

n     No change in earning estimates – FY12E EPS at Rs 18.9 - Maintain our ACCUMULATE rating on the stock with target price of Rs 420/share