Large Cap FMCG Stock Soars 5% In 7 Days, Motilal Oswal Sees Double Digit Rally: Buy

Motilal Oswal has recommended investors to buy Godrej Consumer Products Ltd (GCPL) with a target price of Rs 1035 apiece. The current market price of the stock is Rs 917 apiece with marginal 0.07% intraday gain. If you buy Godrej Consumer Products Ltd shares now, you will get potential 13% upside.

According to the analyst when it comes to GAUM (Godrej Africa, the US, and the Middle East) business, "The business witnessing strong sales momentum. Sales to grow in double digits on constant currency basis." The company has a market capitalisation of Rs 93,796 crore. Check key takeaways below:

1. Godrej Consumer Products Stock Performance & Return

The current market price of the stock is Rs 916 apiece with 52-week high at Rs 962 apiece and 52-week low at Rs 660 apiece, respectively. The stock has given 31% return in last 3-years, 38% return in last 5-years, and declined marginally by 3% in last 1-year.

2. Godrej Consumer Products India, Indonesia Business

When it comes to India business, "Sales growth may be in double digits YoY, volume may grow in low single digits YoY, and home Care and Personal Care may witness double-digit sales growth. Meanwhile, the Indonesia business may report a constant-currency sales decline in low single digits. Ex-Hygiene portfolio, the business may see marginally positive growth.

3. Valuation And View

According to Motilal Oswal, "Since the new CEO is focusing on boosting growth in the high-margin, high RoCE domestic business, we believe the company's medium-term earnings growth outlook is strong. Valuation at 34x Dec'24E EPS is attractive, given the potential earnings CAGR of ~16% over FY22-25E. Maintain BUY with a TP of INR1,035."

4. About Godrej Consumer Products

Godrej Consumer Products Ltd (GCPL) is a renowned Fast-Moving Consumer Goods (FMCG) companies in India. The company has five product segments namely Household Insecticides Soaps Hair Colours Liquid Detergents and Air Fresheners.

It has manufacturing facilities at Malanpur in Madhya Pradesh Baddi in Himachal Pradesh Guwahati in Assam and Namchi in Sikkim.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. 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 check with certified experts before taking any investment decision.