ICICI Securities Suggests "Buy" Midcap Godrej Stock For 49% Gains, Trading 5.64% Up From 52-week Low

Leading brokerage firm ICICI Securities has placed a "Buy" on Godrej Industries Ltd, a midcap Godrej Group stock. The brokerage has assigned a "Buy" in the stock with a target price of Rs 628/share, implying a healthy upside of 49% from its current level. The Stock operates in the Diversified sector. It has a market capitalisation of Rs 14,276.83 crore. Below are the key highlights about the stock from the report:

Godrej Industries' Stock Outlook

The share price of Godrej Industries last traded at 424.10/share. The stock is trading 5.64% up from its 52 week low, which is Rs 401.45/share as on 14 November 2022. The stock recorded its 52 week high on 16 February 2022 at Rs 555.75/share.

The stock has given mixed returns over the past 5 years. It declined 1.33% in the past 1 week, and 4.44% in the past 1 month, respectively. However, it gained 3.09% in the past 3 months. It has fallen 22.58% in the past 1 year. In the past 3 years, it gave a positive return of 3.38%. In the past 5 years, it has fallen 21.72%.

ICICI Securities Recommends "Buy" for a target price of Rs 628/share

According to the brokerage, Godrej Industries (GIL) generates major value from its listed subsidiaries and associates viz. Godrej Consumer, Godrej Properties and Godrej Agrovet. As per ISec target prices for Godrej Consumer, Godrej Properties and Godrej Agrovet and 50% holdco discount, GIL's value works out to Rs628/share. At current market prices of listed subsidiaries and associates, GIL's value works out to Rs601/share. The stock trades at a discount of 66% to combined market value of subsidiaries and associates. 

The brokerage said, "We expect subsidiaries as well as associates of Godrej Industries to be the net beneficiaries of revival in economy. We also expect these businesses to benefit with value migration from unorganised to organised sector. We value GIL as per SoTP methodology at TP of Rs628. We maintain BUY rating on the stock. Standalone business (<12% of GIL's TP) reported revenue growth of 22.7% YoY and PAT was Rs784mn in Q3FY23 (vs 233mn in Q3FY22). Prolonged losses (if any) of Godrej Capital may result in higher holding company discount."

Disclaimer

The stock has been picked from the brokerage report of ICICI Securities. 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.