Axis Capital retains 'hold' on GCPL

Axis Capital has maintained its ‘Hold’ rating on Godrej Consumer Products (GCPL) with a target price of Rs 775. GCPL has not only outperformed the Sensex by 47% but it is also one of best-performing FMCG stocks with 66% returns in last 12 months. Axis Bank also reduced its FY13E EPS by 9% and FY14E EPS by 5% on higher marketing investment and lower international margin. GCPL’s consolidated organic revenue growth of 19% yoy, with 20% yoy growth in Indian business (55% of revenue), and 16% organic growth in international businesses in Q3FY13 was in line with estimates.