Please refer to important disclosures at the end of this report
Godrej Consumer Products Limited which is engaged in the manufacture of
personal and household care products. Despite GST causing minor disruptions in
3QFY18, Godrej Consumer Products (GCPL) India business outlook appears to
be encouraging, with (i) the significant acceleration in the pace of innovation
planned over the next two years and (ii) the shift in trade to the organized from
unorganized segment still early days though as the key drivers. GCPL is also
confident of the growth prospects in International business in Africa. For this
business, it targets USD1b sales and expects EBITDA margin to move from 16%
to 19-20% over the next 5-6 years. GCPL’s earnings growth has been more
consistent than FMCG peers (FY17 reported the eighth consecutive year of
double-digit EBITDA and PAT growth).It has reported revenue & bottom line
growth of 12% & 18% respectively from FY12-17 and has maintained average
operating margin of 18% over last 5 years. The cash flow has improved from
`1098.51cr in FY12 to `1804.99cr in FY17. With enhanced product-mix across
categories, continued cost saving initiatives and improved performance in
international business would drive growth for GCPL in coming years. The
company has a ROE of 25.05% of TTM earnings and has maintained average
payout of 29.42% over last 5 years. Hence BUY.
CMP `980
Reuters Code
BSE Sensex
Face Value (`)
Personal Products
Market Cap (` cr)
52 Week High / Low
Avg. Daily Volume
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Godrej Consumer Products Ltd
Others | Personal Products
Jan 02, 2018
Godrej Consumer Products Ltd |Personal Products
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Godrej Consumer Products
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)