Buy Godrej Consumer: Prashastha Seth, IIFL Wealth

Prashastha Seth, Senior Fund Manager, IIFL Wealth, in a chat with ET Now, gives his stock recommendation


What did you make of the news on Godrej Consumer?

The Temasek deal is extremely good for Godrej Consumers. If they would have announced another acquisition without any fresh equity issuance, that would have been perceived fairly negatively by the market because the debt to equity ratio of the company would have increased significantly. But the issuance of equity to Temasek essentially takes care of a lot of concerns people had on the Godrej Consumer. Now debt equity comes down from 1x to 0.6x with Temasek putting in money. So all in all, this is a fairly positive news. Earnings were anyways expected to be extremely strong and those numbers have come in very strong. I would be a buyer of this stock at these levels.