Godrej Consumer rallies over 10% and hits upper circuit; here’s why

Godrej Consumer, a prominent FMCG company of the Godrej Group engaged in the manufacturing and marketing of Household and Personal Care products, declared its earnings for the December quarter yesterday, resulting in a significant surge in its share price today.

Share Performance

At the start of the day’s trading session, the stock opened at Rs 1,205.25 per share, higher compared to the previous day’s closing figure of Rs 1,164.15 per share on the BSE. As of the time of writing this article, the shares are currently at Rs 1,291 per share on the BSE, reflecting an impressive gain of 10.91%. It hits intraday highs and lows of Rs 1,299.90 and Rs 1,205.25, respectively.

Furthermore, the company’s shares have hit the upper circuit price limit of 10% today and are currently trading at their all-time high levels. The company’s current market capitalization stands at Rs 1,31,980 crore, and the stock has generated a return of 32% in the past three months and 70% in the past three years. The following is the daily chart of the stock.

December Quarter Earnings

The company announced its third-quarter earnings on Wednesday, during the quarter the company reported revenues of Rs 3,660 crore, reflecting a growth of 1.70% YoY compared to the same quarter in the previous year when the revenue stood at Rs 3,599 crore. The company posted an operating profit of Rs 841 crore for the quarter, in contrast to an operating profit of Rs 727 crore in the corresponding quarter of the previous year. Moreover, the operating profit margin grew from 20% to 23% this quarter.

Furthermore, the company reported a net profit of Rs 581 crore, compared to a net profit of Rs 546 crore in the same period last year. During the third quarter, the volume growth of the consolidated business grew by 8% YoY while in the Indian business volume growth was reported by the company by 12% during the quarter.

The company’s ROCE and ROE are 16.5% and 13.5% respectively and the stock is trading at a PE of 70 times in the market. In terms of ownership, the Promoter holds 63.21%. The FIIs and DIIs hold 22.94% and 8.38%, while the remaining 5.44% is held by public investors, as per the most recent update.

Peer Comparison:

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.