Godrej Consumer Products shares zoom 25% on HUL’s Sudhir Sitapati’s appointment as MD and CEO, Q4 results

Godrej Client Merchandise inventory has surpassed its earlier 52-week excessive of Rs 808 apiece touched on january 21, 2021

Godrej Consumer Products share value zoomed 25 per cent to a contemporary 52-week excessive of Rs 894 apiece intraday on BSE, a day after the corporate posted a 59 per cent on-year rise in consolidated internet revenue to Rs 365.84 crore within the fourth quarter of FY21. The corporate additionally knowledgeable that Sudhir Sitapati will be part of the corporate as managing director and chief government officer efficient October 18. Nisaba Godrej, at present the chairperson and managing director, will proceed to function government chairperson. Godrej Client Merchandise inventory has surpassed its earlier 52-week excessive of Rs 808 apiece touched on January 21, 2021. It had touched an all-time excessive of 1,964. apiece on BSE on June 21, 2017.

Thus far within the session right this moment, 6.84 lakh Godrej Client Merchandise shares have traded on BSE, whereas a complete of 1.66 crore shares have exchanged arms on NSE. Analysts at Motilal Oswal Financial Services have upgraded Godrej Client Merchandise inventory to ‘purchase’. Sitapati’s appointment as MD and CEO for 5 years in addition to his relative younger age (mid-40s), provides him sufficient time to formulate and implement strategic modifications. “The underpenetrated Family Pesticides (70%/50% penetration in city/rural) and Hair Colour (30% penetration) classes may tremendously profit from Sitapati’s previous expertise, the place GCPL has struggled to spice up penetration,” it added.

These at ICICI Securities have additionally upgraded Godrej Client Merchandise to ‘purchase’ from ‘add’. The brokerage agency stated that India’s progress was pushed by soaps (gaining market shares in an inflationary setting) and HI (broad-based throughout codecs) whereas Hair Color continued restoration (with class uptick). “The appointment of Sudhir Sitapati (ex-HUL) as MD & CEO (efficient 18th Oct’21) is probably going a re-rating occasion,” they stated.

Godrej Client Merchandise Ltd’s complete bills got here in at Rs 2,259.12 crore, up 26.07 per cent within the January-March 2021 quarter as towards Rs 1,791.93 crore a yr in the past. It’s India income was up 34.63 per cent to Rs 1,499.74 crore within the quarter below evaluate as towards Rs 1,113.94 crore a yr in the past. India gross sales elevated 35 per cent on-year to Rs 1,466 crore, whereas the EBITDA (earnings earlier than curiosity, tax, depreciation and amortisation) elevated 10 per cent on-year to Rs 331 crore.

Nisaba Godrej stated Godrej Client Merchandise will proceed to focus our efforts the place the demand is – in ‘family pesticides’, ‘hygiene’, and ‘worth for cash’. Below Sitapati management, HUL constructed up its meals and refreshments enterprise as one of many largest in India, which included the $5 billion merger and integration of GlaxoSmithKline Consumer Healthcare with HUL, the biggest deal of its type within the FMCG sector in India.

(The inventory suggestions on this story are by the respective analysis and brokerage agency. Monetary Categorical On-line doesn’t bear any duty for his or her funding recommendation. Please seek the advice of your funding advisor earlier than investing.)