Firstcall Research puts a buy on Godrej Consumer

Firstcall Research has put a buy call on Godrej Consumer with a price target of Rs 612. The research firm has highlighted the following outlook and conclusion:

* At the current market price of Rs.542.00, the stock is trading at 20.28 x FY13E and 17.44 x FY14E respectively.

* Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.26.73 and Rs.31.07 respectively.

* Net Sales and PAT of the company are expected to grow at a CAGR of 23% and 28% over 2011 to 2014E respectively.

* On the basis of EV/EBITDA, the stock trades at 15.94 x for FY13E and 13.63 x for FY14E.

* Price to Book Value of the stock is expected to be at 4.92 x and 3.81 x respectively for FY13E and FY14E.

“We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs.612.00 for medium to long term investment,” the research firm has stated.

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