HomeMarket NewsNomura initiates coverage on Godrej Consumer Products with a 'neutral' rating

Nomura initiates coverage on Godrej Consumer Products with a 'neutral' rating

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By CNBCTV18.com March 22, 2021, 6:49:46 PM IST (Published)

Nomura initiates coverage on Godrej Consumer Products with a 'neutral' rating
Brokerage firm Nomura has initiated coverage on Godrej Consumer Products with a ‘neutral’ rating, stating that its cautious approach is based on the fact that two of the company’s three core growth drivers are still not out of the woods. Nomura has a price target of Rs 770 for the stock.


The Nomura note stated, “Our 2021-23 fiscals’ earnings per share forecasts are 4-5 percent below consensus.” The brokerage firm has predicted a 2021-23 fiscal earnings per share compound annual growth rate of 12 percent.

Nomura is expecting a recovery in Godrej Consumer Products’ in Africa, the US and West Asia to continue over the medium term. The brokerage firm believes that the company’s growth in India in the household insecticides sector will pick up only gradually.

Godrej Consumer Products was incorporated in 2000. It’s a large-cap company — with a market capitalisation of Rs 68,910.46 crore — that operates in the Fast-moving consumer goods (FMCG), sector.

Shares of the company have underperformed the broader indices for a while. According to a report in Mint, the company’s stock, after touching a new 52-week peak on January 21, 2021, has declined and is now trading about 10 percent lower than its pre-COVID highs seen in January 2020.
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