Hold Godrej Consumer: Gurunath Mudlapur

In a chat with ET Now, Gurunath Mudlapur, Director, Atherstone Capital Markets Ltd, talks about the outlook of Godrej Consumer.

Do you think Godrej Consumer has the strength to move up apart from the fact that we do not see any acquisition news going forward if that happens?

If you look at over a longer timeframe in the past, the company has been able to continuously produce results and grow but I have noticed that it takes a lot of time before the next few developments happen and right now they are amidst an acquisition. They want to do some equity dilution because of that and then even the acquisition to become accretive, there is a time period involved before the plan is going to get converted into performance. Also, the market already having factored that in the current prices, there is not very much large upside left from that price point perspective. So, it is just a hold from a market performance perspective and a sector performance perspective at this stage.