Fundamental Analysis

GODREJ INDUSTRIES LTD. 

Ticker : 500164 
BUY : Rs 506.10 
Target : Rs 560

Godrej Industries Limited manufactures fatty acids, fatty alcohols, and surfactants. It also operates in the real estate & property segment. On the consolidated quarterly front, the company recorded net sales of Rs 2,356.47 crore for Q3FY21, which is a decrease of 12.6 per cent from its net sales of Rs 2,696.31 crore reported for Q3FY20. The operating profit declined by 18.84 per cent to Rs 257.42 crore in Q3FY21 from Rs 317.16 crore posted in Q3FY20. The net profit was recorded at Rs 43.59 crore in Q3FY21 from Rs 79.44 crore in Q3FY21, showing a decrease of 45.13 per cent. The household insecticides business grew by 7 per cent whereas soaps delivered a second consecutive quarter of double-digit sales growth of 15 per cent. Its hair colour business recorded a sharp recovery with growth of 14 per cent. The real estate business also recorded total booking value growth of 25 per cent to Rs 1,488 crore and total booking volume growth of 51 per cent to 2.40 million sq. ft. Hence, we recommend BUY.