April Top Picks: KR Choksey Assigns "Buy" On Godrej & Tata Stocks, Sees Gains Up to 35%

KR Choksey in its recent report on Top Idea Picks came up with a "Buy" on two large-cap FMCG stocks namely Tata Consumer Products Ltd., and Godrej Consumer Products Ltd. The brokerage sees a potential upside of up to 35% from the current level if stocks are purchased at the current market price. Check below to know more:

Godrej Consumer Products Ltd. (GCPL)

KR Choksey assigns a "Buy" on GCPL with a target price of Rs 1,110/share, claiming a potential upside of up to 16% from its current level. The last traded price of the stock is Rs 964.50/share. Its 52 week low is Rs 708.50/share and 52 week high is Rs 973/share.

It gave 28.09% positive return in the past 1 year, 81.48% in 3 years and 30.87% in 5 years, respectively. In the past 1 month, it has given 4.19% positive return. It has a market valuation of Rs 98,638.96 crore.

KR Choksey said, "We expect overall Revenue/EBITDA/Adj. PAT to increase by 10.6%/14.3%/11.3% respectively over FY22-25E. We value the company at a P/E multiple of 43.5x and its FY25E EPS of INR 25.5 and arrive at a target price of INR 1,110 per share with an upside of 15.0% over the CMP. Accordingly, we maintain our "BUY" rating on the shares of Godrej Consumer Products Ltd."

About - Godrej Consumer Products

Godrej Consumer Products (GCPL) is a leading emerging markets company catering to 1.2 bn consumers across Asia, Africa and Latin America. GCPL operates under 2 main segments- Home Care and Personal Care and has brands across categories such as Household Insecticides, Hair Colour, Air Care, Fabric Care, Personal Wash and Hygiene, Premium Beauty and Professional Products

Tata Consumer Products Ltd. (TATACONS)

KR Choksey picks TATACONS with a "Buy" call for a target price of Rs 964/share. It sees a potential upside of up to 35% from its current level. The stock's last traded price is Rs 717.05/share. Its 52 week low is Rs 686.60/share and 52 week high is Rs 861.15/share.

The stock gave 9.31% negative return in the past 1 year, however, in the past 1 month it gave 1.01% positive return. It gave 168.4% positive return in 3 years and 160.94% in 5 years, respectively. It has a market valuation of Rs 66,614.78 crore.

KR Choksey said, "We have valued TATACONS on a SOTP basis. For India Business, we apply an EV/EBITDA multiple of 35.0x to FY25E EBITDA; for International Business, we apply an EV/EBITDA multiple of 14.8x to FY25E EBITDA; and for Starbucks business, we apply an EV/Revenue multiple of 2.8x to FY25E Revenue. Accordingly, we assign a target price of INR 964 per share, an upside of 34.5% over the CMP with a "BUY" rating on the shares of Tata Consumer Products Ltd."

About - Tata Consumer Products Limited

Tata Consumer Products Limited (TATACONS) is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The Company's portfolio of products includes tea, coffee, water, ready-to-drink, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals. Tata Consumer Products is the 2nd largest branded tea company in the world.

Disclaimer - The stocks have been picked from the brokerage report of KR Choksey. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.