Godrej Consumer Products Ltd (532424)
closes at ₹710.15 with
a Gain of +4.40% on
26-March-2021 with formation of a Green
Candle on Daily Price Chart.
About the Company : Godrej
Consumer Products is engaged in a fast moving consumer goods Company,
manufacturing and marketing Household and Personal Care products.
Sector Update : Positive
Strength : 1. The company is eyeing a double digit
revenue growth and 17%-18% margins in key markets such as Africa 2. Double-digit growth
on the back of strong demand in rural markets and recovery in urban areas.3.
The soaps category will see 15 per cent growth
Weaknesses : 1. Increase in the cost of raw material
such as palm oil and packaging material.
Financials : Godrej Consumer Products Ltd has posted Net Sales /
Revenue of ₹9910.80Cr &
Net Profit of ₹2143.00 Cr in
FY2020 and expected to post Net Sales / Revenue of ₹10911.30 Cr &
Net Profit of ₹2448.10 Cr in
FY2021 and Net Sales / Revenue of ₹11922.50 Cr &
Net Profit of ₹2690.50 Cr in
FY2022 and Net Sales / Revenue of ₹13097.70 Cr &
Net Profit of ₹3005.90 Cr in
FY2023.
Valuations : The Company is now
Trading at X 4.10 of its valuations (
last 4Quaters earnings considered here) with ~310% Premium and at X1.82 of its FY 2021, which is now almost ~82% Premium
to its value and X 1.62 of its FY 2022 earning with a premium of ~62% and X1.48of its FY2023 earning with ~48% premium to its valuations.
Margin of Safety (1Yr Bond Yield: Value>1
) is now 0.4, which makes is attractive
after ~60% decline in CMP. The Equity Value Per Share ( Enterprise Value Method ) is ₹702.70
Whats
best in It : Godrej Consumer Products Ltd is now available at
EPS of 14.60(FY2020), which will improve to 20.9 in FY2023, Debt is ₹1148.50 Cr inFY2020 will Decline to ₹320.70 by Fy2023 and Free Cash Flow will rise to ₹2171.10 Cr in from ₹1436.10 Cr during the same period.The cos is planning to go for capex,
will rise from ₹152.00Cr
in FY2020 to ₹285.0 Cr in FY2023; Return on
Assets from 10.90% to 12.60% and Book Value per share from ₹77.30 to ₹101.00 by FY2023.
If We factor its earnings/valuations, its Price arrives
at ₹1964.00 with
consideration FY2023 earnings.
Disclaimer : We are / may going to take exposure shortly.
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Data
Source | NSE Website | Screener.In | Capital Line | Money Control |
The
author tracks economic, behavioural and corporate tends, hoping to gauge good
avenues of return based on Fundamental Valuations of Stocks, a follower of EPV
method. You can reach me/us at |
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