GCPL :: 2QFY2012 - Result Review: Angel Broking,

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GCPL
Godrej Consumer (GCPL) posted a modest set of numbers for the quarter, largely
in-line with our estimates. Consolidated top line grew by 24.5% yoy, with domestic
sales and international business posting healthy growth of 24% and 19% yoy,
respectively. Soaps, household insecticides and hair colors performed well for the
company. On the operating front, the company reported a marginal decline in its
margin (down 23bp yoy), which came in at 17.6%. Recurring PAT grew by 13.3%
yoy; whereas on a reported earnings basis, the company posted a decline of 2.5%
yoy in earnings and stood at `128cr (`131cr). The quarter witnessed robust growth
in the hair colors and household insecticides categories, growing by more than
double the category growth rates (32% yoy and 29% yoy), respectively. At the CMP
of `404, the stock is trading at 18.8x FY2013E earnings of `21.5. We maintain
our Accumulate rating on the stock with a revised target price of `452 (`457),
based on 21x FY2013E EPS.