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ICICI Securities has buy call on Godrej Industries with a target price of Rs 656. The current market price of Godrej Industries Ltd. is Rs 479.05. Time period given by analyst is one year when Godrej Industries Ltd. price can reach defined target.
Godrej Industries Ltd., incorporated in the year 1988, is a Mid Cap company (having a market cap of Rs 16191.39 Crore) operating in Diversified sector.
Godrej Industries Ltd. key Products/Revenue Segments include Chemicals, Oil Vegetable, Dividend, Rental Income, Export Incentives, Scrap, Wind Energy for the year ending 31-Mar-2021.
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 4727.38 Crore, up 26.59 % from last quarter Total Income of Rs 3734.54 Crore and up 69.73 % from last year same quarter Total Income of Rs 2785.27 Crore. Company reported net profit after tax of Rs 376.06 Crore in latest quarter.
Investment Rationale
Godrej Industries (GIL) generates major value from its listed subsidiaries and associates viz. Godrej Consumer, Godrej Properties and Godrej Agrovet. As per I-Sec target prices for Godrej Consumer, Godrej Properties and Godrej Agrovet and 50% holdco discount, GIL’s value works out to Rs656/share. At current market prices of listed subsidiaries and associates, GIL’s value works out to Rs622/share. The stock trades at a discount of 60% to combined market value of subsidiaries and associates. It expects subsidiaries as well as associates of Godrej Industries to be the net beneficiaries of revival in economy. It also expect these businesses to benefit with value migration from unorganised to organised sector. It values GIL as per SoTP methodology at TP of Rs656 (earlier TP: Rs628). It upgrades the stock to BUY rating from ADD. Standalone business (<15% of GIL’s TP) reported revenue growth of 55.1% YoY and EBITDA of Rs728mn (up 203.8% YoY) in Q4FY22. Prolonged losses of Godrej Capital may result in higher holding company discount.
Promoter/FII Holdings
Promoters held 67.18 per cent stake in the company as of 31-Dec-2021, while FIIs owned 8.62 per cent, DIIs 3.77 per cent.
Godrej Industries Ltd., incorporated in the year 1988, is a Mid Cap company (having a market cap of Rs 16191.39 Crore) operating in Diversified sector.
Godrej Industries Ltd. key Products/Revenue Segments include Chemicals, Oil Vegetable, Dividend, Rental Income, Export Incentives, Scrap, Wind Energy for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 4727.38 Crore, up 26.59 % from last quarter Total Income of Rs 3734.54 Crore and up 69.73 % from last year same quarter Total Income of Rs 2785.27 Crore. Company reported net profit after tax of Rs 376.06 Crore in latest quarter.
Investment Rationale
Godrej Industries (GIL) generates major value from its listed subsidiaries and associates viz. Godrej Consumer, Godrej Properties and Godrej Agrovet. As per I-Sec target prices for Godrej Consumer, Godrej Properties and Godrej Agrovet and 50% holdco discount, GIL’s value works out to Rs656/share. At current market prices of listed subsidiaries and associates, GIL’s value works out to Rs622/share. The stock trades at a discount of 60% to combined market value of subsidiaries and associates. It expects subsidiaries as well as associates of Godrej Industries to be the net beneficiaries of revival in economy. It also expect these businesses to benefit with value migration from unorganised to organised sector. It values GIL as per SoTP methodology at TP of Rs656 (earlier TP: Rs628). It upgrades the stock to BUY rating from ADD. Standalone business (<15% of GIL’s TP) reported revenue growth of 55.1% YoY and EBITDA of Rs728mn (up 203.8% YoY) in Q4FY22. Prolonged losses of Godrej Capital may result in higher holding company discount.
Promoter/FII Holdings
Promoters held 67.18 per cent stake in the company as of 31-Dec-2021, while FIIs owned 8.62 per cent, DIIs 3.77 per cent.
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Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
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