Sharekhan is bullish on Godrej Consumer Products has recommended buy rating on the stock with a target price of Rs 1115 in its research report dated July 07, 2021.
Broker Research
July 08, 2021 / 03:40 PM IST
An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.
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// else // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’); // //} } //$ (‘.accdiv’).html(”); //$ (‘.accdiv’).html(appndStr); } }, //complete:function(d){ // if(typparam1==1) // { // watchlist_popup(‘open’); // } //} }); }); } else { var disNam =’stock’; if($ (‘#impact_option’).html()==’STOCKS’) disNam =’stock’; if($ (‘#impact_option’).html()==’MUTUAL FUNDS’) disNam =’mutual fund’; if($ (‘#impact_option’).html()==’COMMODITIES’) disNam =’commodity’; alert(‘Please select at least one ‘+disNam); } } else { AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function pcSavePort(param,call_pg,dispId) { var adtxt=”; if(readCookie(‘nnmc’)){ if(call_pg == “2”) { pass_sec = 2; } else { pass_sec = 1; } var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’; $ .ajax({url:url, type:”POST”, //data:{q_f:3,wSec:1,dispid:$ (‘input[name=sc_dispid_port]’).val()}, data:{q_f:3,wSec:pass_sec,dispid:dispId}, dataType:”json”, success:function(d) { //var accStr= ”; 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Sharekhan’s research report on Godrej Consumer Products
GCPL’s revenues are expected to grow by ~20% in Q1FY2022 as domestic business grows in the high teens and Africa business clocks a growth of over 50%. OPM would stay almost flat at ~20% (gross margins to decline by 100-130 bps y-o-y). Scale-up in rural penetration to 35% in the medium term; sustained market share gains in key domestic categories, gradual recovery in Indonesia and steady growth in Africa will be key growth drivers. Palm oil prices have fallen 20% from highs, which will reduce pressure on margins in the coming quarters. Also, calibrated price hikes in soaps category will support margins.
Outlook
Revamped growth strategies under a new leadership and improved earnings visibility are key re-rating factors. We maintain a Buy on the stock with a revised PT of Rs. 1,115.
For all recommendations report, click here
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