Alpha | Godrej Consumer Products Ltd. – Equity Research Desk

Godrej Consumer Products Ltd. – Hair Care Expert

Godrej Consumer Products Ltd (GCPL) is a part of the 125-year-old Godrej Group. The group enjoys a patronage of 1.15 billion consumers globally. GCPL is present in emerging markets of Asia, Africa and Latin America and the company’s product portfolio ranges from home care and personal care to hair care, household insecticides, hair colour, soaps, air fresheners, liquid detergents, hair extensions, personal wash, styling in mass and professional markets, skin care, sanitizers, sun care and female deodorants. GCPL is ranked among the largest household insecticide and hair care players in the emerging markets.

Valuation

GCPL has a consistent track record of introducing new products to cater to shifting consumer preferences and expects that, going forward, its revenue growth will be driven by stable demand growth and introduction of new products across geographies. Supported by its portfolio of strong brands, constant innovation, and brand repositioning, the company has managed to maintain its competitive position in these key product categories and geographies. Hence, we recommend an ACCUMULATE rating in the stock with the target price (TP) of Rs.1015, 60x FY24E EPS.

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