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Godrej Consumer soars 7% as Credit Suisse upgrades stock

The Swiss broker said Godrej Consumer Products is finally coming out of a rough patch.

ETMarkets.com|
Last Updated: Mar 02, 2020, 03.33 PM IST
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Credit Suisse pointed out that the valuations have seen a significant de-rating in recent times.
Godrej Consumer Products rallied about 7 per cent in Monday’s trade after global brokerage Credit Suisse upgraded the stock.

The Swiss broker said Godrej Consumer Products is finally coming out of a rough patch. It said its home insecticides (HI) business is showing some signs of recovery.

Credit Suisse pointed out that the valuations have seen a significant de-rating in recent times. A gradual re-rating can be expected as HI performance improves.

The broker has pegged the target price at Rs 680. That translates into 21 per cent potential upside from the last closing.

The FMCG major posted a 5.11 per cent increase in consolidated net profit at Rs 445.20 crore in the third quarter ended December, helped by volume growth in domestic business. Total income during the quarter under review stood at Rs 2,801.57 crore, 1.99 per cent lower as compared with Rs 2,746.65 crore in the year-ago period.

Commenting on the results, GCPL Executive Chairperson Nisaba Godrej had said, "We delivered a steady performance in the third quarter of fiscal year 2020. Our India business delivered a robust volume growth of 7 per cent alongside gaining market shares across major categories, amid further deterioration in staples consumption."

The shares of the company closed 6.11 per cent higher at Rs 595 on BSE.

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