Bullish on Godfrey Phillips in FMCG space: Neeraj Deewan

In a chat with ET Now,Neeraj Deewan, Director, Quantum Securities,shares his views on Godfrey Phillips.



ET Now: The consumer stocks that you are bullish on right now?



Neeraj Deewan: We are bullish on Godfrey Phillips. It is one stock which is trading at a discount to the valuation which is 11-11.5 time of FY16 earning. It is not easy to find such cheap stocks at this kind of a market.

Godfrey Phillips is one where valuations need to catch up. We have a buy rating on this stock and we have a financial interest so the disclaimer goes with it.



ET Now: Is it a pure valuation play or do you believe sales growth is there for Godfrey Phillips going ahead?

Neeraj Deewan: One it is a valuation play, second they have a retail division that also is picking up and they want to expand that.

They have a cash to do it and the balance sheet is also very strong so that can also give a fillip to the stock in the next six months to one year.