Prefer Godrej Consumer to Jyothi Lab: Geojit BNP Paribas Fin Services

In a chat with ET Now, Gaurang Shah, Asst. VP, Geojit BNP Paribas Financial Services, shares his view on the outlook of Godrej Consumers to Jyothi Lab.

FMCG companies are looking for acquisitions abroad. Jyothi Laboratories have earmarked Rs 30 crore for acquisitions to be made in December this year. Is it a good time to pick up some of these counters?

I would vouch for Godrej Consumers, given the product profile that they have and of course the market share in the fabric care liquid status been on the shelf for a very long time. For Jyothy Laboratories, the acquisitions happening in December, there could be a little bit of concern about how much of pressure does it really fall on the cash flows of the balance sheet. Every time a company goes for an acquisition in the domestic or the overseas market, the market gives a thumbs down. A similar thing happened with Godrej Consumers when it acquired about 2 or 3 labels in the overseas market but we are more comfortable with Godrej Consumers rather than Jyothy Laboratories.