Nomura upgrades Godrej Consumer to buy

Nomura Financial Advisory and Securities India has upgraded its rating on Godrej Consumer Products to buy from neutral and raised target price to Rs 1,765 from Rs 1,630.

Following weak first quarter results and due to high valuations, the stock has corrected around 8% from its high in July this year and as the long term story is intact, we are upgrading it to buy, said Nomura.

"We continue to believe the company will register solid revenue and earnings growth in the coming years, driven by strong performance in the international businesses and its leadership position in the nascent category of household insecticides in India," the brokerage said.

On Tuesday, Godrej Consumer's shares ended up 1.72% at Rs 1,563.85.