Godrej Consumer - Lower Raw Material Cost, GAUM Turnaround To Boost Growth: Motilal Oswal

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.Godrej Consumer Products Ltd.’s domestic businesses had demonstrated strong sales growth in the first half of the last decade, before losing steam in the second half. Domestic and consolidated sales growth crossed double digits in the last two years and appears to do so in FY23 as well, far better than the 4.1% sales compound annual growth rate between FY16 and FY20. The focus on profitability improvement in the African region (Godrej Consumer’s second largest sales contributor) and continued discipline in capital allocation will reduce the historical drag on the overseas businesses.We expect the company to be the key beneficiary of the sharp reduction in raw material costs (especially palm oil) from the peak over the next few quarters. With the new Chief Executive Officer focusing on improving growth in the high-margin, high-return on capital employed domestic business, as highlighted in our recent CEO meet note, Godrej Consumer’s medium-term earnings growth outlook is strong. The valuation at ~34 times FY24E earnings per share is inexpensive and is at a steep discount to peers..Click on the attachment to read the full report:.Consumer Sector – Rural To Drive Growth For Staples But Sluggishness In Discretionary Continues: Systematix.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Godrej Consumer - Lower Raw Material Cost, GAUM Turnaround To Boost Growth: Motilal Oswal

Of the two large components of the overseas business, emphasis is primarily on improving Godrej's Africa, US, Middle East profits

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Godrej Consumer - Lower Raw Material Cost, GAUM Turnaround To Boost Growth: Motilal Oswal

Of the two large components of the overseas business, emphasis is primarily on improving Godrej's Africa, US, Middle East profits

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