Buy Godrej Consumer Products; target of Rs 1225: Emkay Global Financial

Emkay Global Financial Initiates Coverage on Godrej Consumer Products with a Buy Rating and Target Price of Rs 1,225. Brokerage firm sees 12% sales CAGR and 21% EPS CAGR over FY23-26E.

Key Takeaways:

• Emkay Global Financial has initiated coverage on Godrej Consumer Products (GCPL) with a Buy rating and a target price of Rs 1,225.
• The brokerage firm sees 12% sales CAGR and 21% EPS CAGR over FY23-26E.
• GCPL's revamped management team is targeting to resolve business issues and make businesses structurally sound.
• The company's focus domestically is on demand generation, while its focus internationally is to enhance supplies.
• Efficiency benefits are expected to be redeployed for higher growth, given GCPL's improved margin profile.
  

Conclusion:

Overall, Emkay Global Financial is positive on GCPL's growth prospects and believes that the stock is undervalued at current levels. The brokerage firm has a Buy rating on the stock with a target price of Rs 1,225.

Additional Information:

• The current share price of GCPL is Rs 1,035.95.
• The target price of Rs 1,225 implies a potential upside of 18%.
• The brokerage firm has assigned a Buy rating to the stock due to its strong growth prospects and undervalued valuation.

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