Godrej Consumer Products share price tag zoomed 25 per cent to a fresh 52-week higher of Rs 894 apiece intraday on BSE, a day right after the firm posted a 59 per cent on-year rise in consolidated net profit to Rs 365.84 crore in the fourth quarter of FY21. The firm also informed that Sudhir Sitapati will join the firm as managing director and chief executive officer successful October 18. Nisaba Godrej, at the moment the chairperson and managing director, will continue to serve as executive chairperson. Godrej Consumer Products stock has surpassed its preceding 52-week higher of Rs 808 apiece touched on January 21, 2021. It had touched an all-time higher of 1,964. apiece on BSE on June 21, 2017.
So far in the session today, 6.84 lakh Godrej Consumer Products shares have traded on BSE, although a total of 1.66 crore stocks have exchanged hands on NSE. Analysts at Motilal Oswal Financial Services have upgraded Godrej Consumer Products stock to ‘buy’. Sitapati’s appointment as MD and CEO for 5 years as properly as his relative young age (mid-40s), offers him sufficient time to formulate and implement strategic alterations. “The underpenetrated Household Insecticides (70%/50% penetration in urban/rural) and Hair Color (30% penetration) categories could greatly benefit from Sitapati’s past experience, where GCPL has struggled to boost penetration,” it added.
Those at ICICI Securities have also upgraded Godrej Consumer Products to ‘buy’ from ‘add’. The brokerage firm mentioned that India’s development was driven by soaps (gaining marketplace shares in an inflationary atmosphere) and HI (broad-based across formats) although Hair Colour continued recovery (with category uptick). “The appointment of Sudhir Sitapati (ex-HUL) as MD & CEO (effective 18th Oct’21) is likely a re-rating event,” they mentioned.
Godrej Consumer Products Ltd’s total costs came in at Rs 2,259.12 crore, up 26.07 per cent in the January-March 2021 quarter as against Rs 1,791.93 crore a year ago. It’s India income was up 34.63 per cent to Rs 1,499.74 crore in the quarter below assessment as against Rs 1,113.94 crore a year ago. India sales elevated 35 per cent on-year to Rs 1,466 crore, although the EBITDA (earnings just before interest, tax, depreciation and amortisation) elevated 10 per cent on-year to Rs 331 crore.
Nisaba Godrej mentioned Godrej Consumer Products will continue to concentrate our efforts exactly where the demand is – in ‘household insecticides’, ‘hygiene’, and ‘value for money’. Under Sitapati leadership, HUL constructed up its foods and refreshments small business as one of the biggest in India, which incorporated the $5 billion merger and integration of GlaxoSmithKline Consumer Healthcare with HUL, the biggest deal of its type in the FMCG sector in India.
(The stock suggestions in this story are by the respective study and brokerage firm. TheSpuzz Online does not bear any duty for their investment suggestions. Please seek the advice of your investment advisor just before investing.)