Buy Godrej Consumer Products, target price Rs 1130: Motilal Oswal

Motilal Oswal Financial Services has buy call on Godrej Consumer Products with a target price of Rs 1130. The current market price of Godrej Consumer Products is Rs 982.65 .

Godrej Consumer Products, incorporated in the year 2000, is a Large Cap company (having a market cap of Rs 100541.18 Crore) operating in FMCG sector.

Godrej Consumer Products key products/revenue segments include Home Care, Personal Care, Hair Care, Other Operating Revenue for the year ending 31-Mar-2022.


Investment Rationale
The brokerage reiterates buy rating with a TP of INR1,130 (based on SoTP valuation:55x domestic business, 25x Indonesia business, 15x GAUM, other business and RCCL).

Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 3258.07 Crore, down -10.54 % from last quarter Total Income of Rs 3642.07 Crore and up 10.83 % from last year same quarter Total Income of Rs 2939.58 Crore. Company has reported net profit after tax of Rs 452.14 Crore in latest quarter.

The company’s top management includes Ms.Nisaba Godrej, Ms.Pippa Tubman Armerding, Ms.Ndidi Nwuneli, Mr.Omkar Goswami, Mr.Narendra Ambwani, Ms.Ireena Vittal, Ms.Tanya Dubash, Mr.Jamshyd N Godrej, Mr.Nadir Godrej, Mr.Pirojsha Godrej, Mr.Sudhir Sitapati, Mr.Sumeet Narang. Company has BSR & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 102 Crore shares outstanding.

Promoter/FII Holdings
Promoters held 63.21 per cent stake in the company as of 31-Mar-2023, while FIIs owned 23.72 per cent, DIIs 7.11 per cent.