Godrej Consumer
BSE SENSEX
33,600
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm/ Vol ‘000
Free float (%)
S&P CNX
10,441
GCPL IN
681.3
636.3 / 9.9
1084 / 643
-2/-5/2
528
36.8
1 November 2017
2QFY18 Results Update | Sector: Consumer
CMP: INR967
TP:INR1,015(+5%)
Neutral
Soaps drives India biz growth; Indonesia continues to underperform
Godrej Consumer’s (GCPL) 2QFY18 consolidated net sales grew 3% YoY
to
INR25b. Consol. EBITDA increased by 14.7% YoY (est. of +19%) to INR5.3b and
adj. PAT by 13.8% YoY (est. of +18.3%) to INR3.7b. Consolidated comparable
(adjusted for GST accounting effect) constant currency sales grew 10% YoY,
with India business posting 11% growth.
India branded business volumes grew 10% YoY.
All three key domestic
segments reported YoY sales growth. Household insecticides business reported
comparable 4% YoY sales growth; Soaps revenue grew by 26% YoY (strong
double-digit volume growth); and Hair color business sales were up by 4% YoY.
Gross margin expanded 100bp YoY to 56.1%.
Lower ad spends (-10bp YoY to
8.5% of sales) and other expenses (-80bp YoY to 15.7%) were partially offset by
higher staff costs (+30bp YoY to 10.5%). Thus, EBITDA margin expanded 160bp
YoY to 21.3%.
Concall highlights:
1) Post GST, the trade channels are getting back to normal,
and consumer off-take has improved. By end-3QFY18, management expects
wholesale to be completely back on track. 2) GCPL was another company after
Marico, Dabur and HUL to mention that rural growth was higher than urban in
2QFY18.
Valuation view:
There is no material change to our EPS forecasts. At 39.5x
Mar’19E EPS, the stock is not undervalued. Earnings growth has been more
consistent than FMCG peers (FY17 reported the eighth consecutive year of
double-digit EBITDA and PAT growth). However, given its exposure to various
geographies, attendant currency risks and relatively low RoE (mid-20s), we
believe the stock does not warrant a higher multiple. Maintain
Neutral
with a
revised TP of INR1,015 (39x Sep’19E EPS, 5% premium to three-year average).
FY18
FY17 FY18E
2Q
3QE
4QE
24,969 27,504 27,328 92,428 101,529
6.0
15.0
14.8
9.7
9.8
5,330 6,098 5,983 18,929 20,863
21.3
22.2
21.9
20.5
20.5
14.7
20.4
10.5
16.5
10.2
386
417
438 1,416 1,614
402
377
362 1,452 1,538
286
323
492 1,004 1,384
4,721 5,627 5,675 16,908 19,095
1,060 1,407 1,390 3,816 4,492
22.5
25.0
24.5
22.6
23.5
3,664 4,220 4,241 13,097 14,564
13.8
21.0
10.8
12.6
11.2
(INR Million)
FY18
Var.
2QE
(%)
26,744
-6.6%
13.5
5,510
-3.3%
20.6
19.0
393
333
213
4,998
-5.5%
1,199
24.0
3,798
-3.5%
18.3
Financials & Valuation (INR b)
Y/E Mar
2017 2018E 2019E
92.4 101.5 116.2
Net Sales
18.9
20.9
23.9
EBITDA
12.9
14.4
16.7
PAT
18.9
21.2
24.5
EPS (INR)
12.4
11.9
15.8
Gr. (%)
77.8
99.7 114.2
BV/Sh (INR)
24.6
23.8
22.9
RoE (%)
16.8
16.3
16.4
RoCE (%)
51.2
45.7
39.5
P/E (x)
36.0
32.7
28.4
EV/EBITDA (x)
Estimate change
TP change
Rating change
Quarterly Performance (Consolidated)
FY17
Y/E March
1Q
2Q
3Q
4Q
Net Sales
21,144 23,563 23,916 23,805
YoY Change (%)
6.5
11.3
8.9
11.8
EBITDA
3,806 4,645 5,063 5,414
Margins (%)
18.0
19.7
21.2
22.7
YoY Growth (%)
21.6
14.1
12.0
19.5
Depreciation
327
358
363
369
Interest
326
350
397
379
Other Income
166
194
294
350
PBT
3,330 4,133 4,474 4,972
Tax
770
915
986 1,145
Rate (%)
23.1
22.1
22.0
23.0
Adj PAT
2,561 3,220 3,489 3,827
YoY Change (%)
18.3
7.6
5.0
21.4
E: MOSL Estimates
1Q
21,728
2.8
3,452
15.9
-9.3
374
397
282
2,960
634
21.4
2,327
-9.2
Krishnan Sambamoorthy – Research Analyst
(Krishnan.Sambamoorthy@motilaloswal.com); +91 22 3027 8029
Vishal Punmiya – Research Analyst
(Vishal.Punmiya@motilaloswal.com); +91 22 3980 4261
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Godrej Consumer
Key quarterly charts
Exhibit 1: Snapshot of 2QFY18 performance
Growth (%)
Net Sales
Net Sales Constant Currency
Net Sales Comparable*
Net Sales Constant Currency Comparable*
EBITDA
EBITDA Constant Currency
Net Profit
Net profit without exceptional & one offs
* Assuming GST in the base quarter sales
Consolidated
2.0
6.0
6.0
10.0
16.0
19.0
14.0
15.0
India
3.0
3.0
11.0
11.0
24.0
24.0
20.0
20.0
International
2.0
9.0
2.0
9.0
3.0
10.0
(5.0)
(2.0)
Source: Company, MOSL
Exhibit 2: Exceptional and one-off items
INR m
Reported
Exceptional Post Tax
Add: Restructuring cost in LATAM
Add: Restructuring cost in Africa and loss on sales of fixed
asset
Less: Others
Add: Call/Put option liability, dividend paid to non-
controlling shareholders and acquisition related expenses
Net profit without exc & one offs
2QFY17
Consolidated India International
3,190
2,130
1,080
20
20
2QFY18
Consolidated India International
3,620
2,560
1,030
10
20
(20)
(20)
10
20
3,190
2,130
1,090
3,660
2,560
1,060
Source: Company, MOSL
Exhibit 3: Snapshot of India business
Sales (INR m)
Household Insecticides
Soaps
Hair Colors
Other brands
Unbranded and Exports
Total
Sales and trade promotions netted off from Sales as per Ind AS
Gross sales
Total Branded Volume
*Comparable growth assuming GST in the base quarter sales
2QFY18
6,710
4,600
1,300
1,210
430
14,250
(780)
13,470
YoY (%)*
4.0
26.0
4.0
27.0
(9.0)
12.0
31.0
11.0
10.0
Source: Company, MOSL
Exhibit 4: Snapshot of International business
International Business
Indonesia
Africa (incl. SON)
Latin America
Europe
Others
Total Net Sales
Sales (INR m)
3,220
5,580
1,490
1,160
260
11,710
2QFY18
Growth (%)
(12.0)
8.0
13.0
11.0
8.0
2.0
CC growth (%)
(7.0)
13.0
30.0
15.0
22.0
9.0
Source: Company, MOSL
1 November 2017
2

Godrej Consumer
Exhibit 5: Segmental quarterly sales growth and EBIT margin
Segment Revenue (INR m)
India
Indonesia
Africa (including SON)
Others
Less: Intersegment eliminations
Net Sales from operations
Segment Revenue growth (%)
India
Indonesia
Africa (including SON)
Others
Less: Intersegment eliminations
Net Sales from operations
Segment EBIT (INR m)
India
Indonesia
Africa (including SON)
Others
Less: Intersegment eliminations
Net Sales from operations
Less: Interest
Less: Exceptional Items
Total Profit Before Tax
Segment EBIT growth (%)
India
Indonesia
Africa (including SON)
Others
Less: Intersegment eliminations
Net Sales from operations
Less: Interest
Less: Exceptional Items
Total Profit Before Tax
Segment EBIT margin (%)
India
Indonesia
Africa (including SON)
Others
Net Sales from operations
Segment EBIT margin change (%)
India
Indonesia
Africa (including SON)
Others
Net Sales from operations
2QFY17
13,195
3,671
5,082
2,688
(242)
24,394
2QFY17
7.1
6.0
58.2
(16.8)
(2.1)
11.0
2QFY17
2,831
702
755
256
(75)
4,468
(350)
(5)
4,114
2QFY17
10.4
(4.8)
44.5
(3.3)
199.6
10.0
11.8
(99.4)
38.3
2QFY17
21.5
19.1
14.8
9.5
18.3
2QFY17
0.6
(2.2)
(1.4)
1.3
(0.2)
3QFY17
12,795
3,948
5,541
2,782
(209)
24,858
3QFY17
(0.5)
7.1
42.3
2.5
(29.5)
8.8
3QFY17
3,096
775
777
300
(77)
4,871
(397)
28
4,502
3QFY17
14.7
5.1
(2.4)
(24.7)
15.6
6.7
34.1
(92.3)
(2.8)
3QFY17
24.2
19.6
14.0
10.8
19.6
3QFY17
3.2
(0.4)
(6.4)
(3.9)
(0.4)
4QFY17
13,546
3,893
4,822
3,072
(438)
24,895
4QFY17
10.3
0.8
47.3
1.7
21.3
12.8
4QFY17
3,463
845
602
448
(6)
5,351
(379)
73
5,045
4QFY17
21.8
10.8
12.5
19.7
(92.9)
20.9
50.5
(103.8)
120.5
4QFY17
25.6
21.7
12.5
14.6
21.5
4QFY17
2.4
2.0
(3.9)
2.2
1.4
1QFY18
11,962
3,229
5,123
2,603
(203)
22,712
1QFY18
12.4
(14.2)
15.6
(2.3)
(24.0)
7.0
1QFY18
2,061
621
642
118
(85)
3,357
(397)
(75)
2,885
1QFY18
0.7
(20.0)
(3.0)
(37.5)
69.8
(7.3)
21.9
(20.8)
(9.9)
1QFY18
17.2
19.2
12.5
4.5
14.8
1QFY18
(2.0)
(1.4)
(2.4)
(2.6)
(2.3)
2QFY18
13,638
3,216
5,576
2,888
(253)
25,066
2QFY18
3.4
(12.4)
9.7
7.4
4.4
2.8
2QFY18
3,417
757
661
334
(47)
5,122
(402)
(44)
4,676
2QFY18
20.7
7.8
(12.5)
30.7
(37.0)
14.6
14.7
840.4
13.7
2QFY18
25.1
23.5
11.8
11.6
20.4
2QFY18
3.6
4.4
(3.0)
2.1
2.1
Source: Company, MOSL
1 November 2017
3

Godrej Consumer
Exhibit 6: HI posted 4% revenue growth in 2QFY18
Home Insecticide revenue growth (%)
16
2
(2)
(11)
11
15
13
15
18
10
4
4
4
Source: Company, MOSL
Exhibit 7: Soaps posted 26% revenue growth, with strong double-digit volume growth
Soaps revenue growth (%)
13
11
15
13
3
2
1
9
7
26
(6)
(10)
(6)
Source: Company, MOSL
Exhibit 8: Hair Colors revenues grew 4% in 2QFY18
Hair Colors revenue growth (%)
19
9
10
12
12
13
7
4
0
(2)
5
4
(1)
Source: Company, MOSL
1 November 2017
4

Godrej Consumer
Earnings Call takeaways
Domestic business details
Believe that out of 10% domestic volume growth, 1% was due to restocking.
GCPL was another company after Marico, Dabur and HUL to mention that rural
growth was percentage point higher than urban in 2QFY18.
Post GST, the trade channels are getting back to normal. and consumer off-take
has improved.
Wholesale channel back to 80-85% of normal levels. By end of 3QFY18,
management expects wholesale to be completely back on track.
Will continue to grow direct distribution by around 10% every year.
Segmental details
4% YoY sales growth in Household Insecticides (HI) was on a very strong base of
18% in 2QFY18. Coil business witnessed de-growth as it is more dependent on
the wholesale channel. Encouraging initial response to personal repellents.
Hair Color: Wholesale business dependence and east dependence of powder
hair color resulted in slower growth. Planning a couple of tactical innovations in
powder over the next two quarters. Have gained shared in Crème sales.
Medium-term focus will be on the value-added and premium segments.
Entire growth in HI and Hair Color was volume led.
Soaps: Gaining share in both Godrej No.1 and Cinthol. 26% growth was on a
weak base of 10% decline in 2QFY17. Gaining share from local and unorganized
players.
In categories like Aer Pockets, penetration is in single-digits, and so new
launches by competitors expand the category.
Overseas business
Indonesia sales performance has improved sequentially. Early signs of recovery
seen. Macro environment in Indonesia still weak. Management changes
successfully made. Regained some lost share in HI in Indonesia.
Kenya and South Africa had macro weaknesses, so pleased with double-digit
sales growth. Investing in wet hair care business and hence EBITDA margin
declined. Out of 13% sales growth, half was volume growth. Expect even better
performance in 2HFY18 in HI in Africa, with launch of wet hair products gaining
traction.
LatAm business was very weak in 1QFY18, so management suggested that
performance should be looked at on a 1HFY18 basis.
Margins
Reason for healthy gross margin growth: Good cover on Palm oil, lower
consumer offers YoY, cost-saving project Pi meant key ingredients in HI were
substituted with cheaper materials. Mix improvement in HI with lower share of
coils also helped.
Have 3-4 months production worth of inventory in palm oil.
Ad spends in India business up by 40-50bp on comparable basis. Might go up by
100bp in 2HFY18.
Targets
HI sales can grow at 11-14% CAGR. Only 50% penetration of the category.
1 November 2017
5

Godrej Consumer
Valuation and view
There is no material change to our EPS forecasts. At 39.5x March 2019E EPS, the
stock is not undervalued. Earnings growth has been more consistent than FMCG
peers (FY17 reported the eighth consecutive year of double-digit EBITDA and
PAT growth). However, given its exposure to various geographies, attendant
currency risks and relatively low RoE (mid-20s), we believe the stock does not
warrant a higher multiple.
Maintain Neutral with a revised target price of INR1,015 (39x September 2019E
EPS, 5% premium to three-year average).
Exhibit 9: Revise estimates marginally for FY18/FY19/FY20
INR M
Sales
EBITDA
PAT
FY18E
106,273
21,594
14,865
Old
FY19E
121,189
24,660
17,000
FY20E
136,955
27,479
19,288
FY18E
101,529
20,863
14,603
New
FY19E
116,205
23,914
16,882
FY20E
131,367
26,680
18,884
FY18E
-4.5%
Change
FY19E
-4.1%
FY20E
-4.1%
-3.4%
-1.8%
-3.0%
-0.7%
-2.9%
-2.1%
Source: Company, MOSL
Exhibit 10: GCPL P/E (x)
64.0
48.0
32.0
16.0
0.0
28.2
19.6
10.8
P/E (x)
Min (x)
Avg (x)
+1SD
36.7
39.9
Max (x)
-1SD
45.8
Exhibit 11: Consumer sector P/E
45.0
37.0
29.0
21.0
13.0
P/E (x)
Min (x)
Avg (x)
+1SD
36.9
Max (x)
-1SD
41.2
30.1
23.2
17.1
39.0
Source: Company, MOSL
Source: Company, MOSL
1 November 2017
6

Godrej Consumer
Exhibit 12: Valuation Matrix
Reco
Company
(INR)
Consumer
Asian Paints
Britannia Inds.
Colgate-Palm.
Dabur India
Emami
Godrej Cons.
GlaxoSmith C H L
Hind. Unilever
ITC
Jyothy Lab.
Marico
Nestle India
P & G Hygiene
Page Industries
Parag Milk
Pidilite Inds.
United Breweries
United Spirits
Retail
Jubilant Food.
Titan Company
Neutral
Buy
Buy
Buy
Buy
Neutral
Neutral
Buy
Neutral
Neutral
Neutral
Neutral
Neutral
Buy
Neutral
Neutral
Buy
Neutral
Sell
Neutral
1,175
4,695
1,043
348
1,262
967
5,282
1,260
270
387
316
7,310
1,280
5,165
1,328
395
1,435
1,015
4,630
1,440
280
410
340
6,160
9
10
27
13
14
5
-12
14
4
6
8
-16
6
7
4
12
-7
-3
-22
-7
1,133
558
289
587
285
636
213
2,676
3,232
71
406
696
281
223
23
401
272
444
107
563
17.5
8.6
4.5
9.1
4.4
9.9
3.3
41.4
50.0
1.1
6.3
10.8
4.4
3.5
0.4
6.2
4.2
6.9
1.7
8.7
8.7
7.3
-5.7
1.9
4.5
12.4
0.9
1.9
9.4
175.7
12.1
-1.6
2.3
15.0
-46.4
6.7
-23.0
87.1
-32.1
18.5
2.6
15.8
10.2
6.8
0.2
11.9
1.3
16.2
8.5
-12.6
3.5
-2.5
14.0
23.4
152.6
7.9
13.9
30.6
114.2
15.8
19.8
22.6
22.1
20.0
25.0
15.8
15.2
21.0
10.2
13.2
21.8
16.1
16.1
35.2
37.0
14.0
41.5
53.8
28.0
20.0
55.9
63.7
49.1
48.0
47.6
51.2
33.8
64.2
32.1
34.4
50.3
62.0
65.4
83.4
74.4
46.1
121.1
114.3
162.5
70.4
54.5
55.0
44.6
45.0
47.5
45.7
33.4
55.2
29.6
39.3
48.6
63.6
57.4
67.6
29.5
42.7
106.3
87.5
75.9
60.8
45.4
44.9
36.5
37.5
38.0
39.5
29.0
45.6
26.9
34.7
39.9
54.7
49.4
50.0
21.5
37.5
75.1
56.9
59.3
50.6
28.5
36.9
50.4
28.4
35.8
24.6
22.2
66.5
23.5
21.1
36.7
39.0
39.3
40.0
6.0
28.2
10.2
21.3
8.2
20.6
0.8
0.0
1.0
0.7
0.7
0.6
1.0
1.3
2.1
1.6
0.9
0.9
3.7
0.4
0.0
0.6
0.1
0.0
0.2
0.4
CMP
Target
Price
(INR)
Mkt Cap
Upside
(INR B) (USD B)
(%)
EPS Growth YoY (%)
FY17
FY18E
FY19E FY17
P/E (x)
FY18E
FY19E
RoE
(%)
FY17
Div.
(%)
FY17
8,699 9,200
19,920 21,310
268
280
772
865
1,051
980
3,055 2,970
1,626
636
1,270
590
Source: Company, MOSL
1 November 2017
7

Godrej Consumer
Financials and valuations
Income Statement
Y/E March
Net Sales
Change (%)
Cost of Goods Sold
Gross Profit
Margin (%)
Total Expenditure
EBITDA
Change (%)
Margin (%)
Depreciation
Int. and Fin. Charges
Interest Income
Other Income-rec.
PBT
Change (%)
Margin (%)
Tax
Tax Rate (%)
PAT
Change (%)
Margin (%)
Minority interest
Reported PAT
2015
82,764
8.9
38,415
44,348
53.6
69,111
13,653
18.0
16.5
908
1,002
284
632
12,659
22.9
15.3
2,861
21.5
9,936
21.2
12.0
693
9,071
2016
84,132
1.7
38,672
45,460
54.0
67,881
16,252
19.0
19.3
1,006
1,190
664
282
15,001
18.5
17.8
3,361
22.4
11,640
17.2
13.8
29
8,276
2017
92,428
9.9
41,325
51,103
55.3
73,545
18,883
16.2
20.4
1,416
1,452
753
94
16,862
12.4
18.2
3,792
22.5
13,071
12.3
14.1
31
13,041
2018E
101,529
9.8
45,213
56,316
55.5
80,666
20,863
10.5
20.5
1,614
1,538
1,271
113
19,095
13.2
18.8
4,354
23.5
14,603
11.7
14.4
39
14,564
2019E
116,205
14.5
51,804
64,401
55.4
92,291
23,914
14.6
20.6
1,861
1,425
1,310
136
22,074
15.6
19.0
5,033
23.5
16,882
15.6
14.5
39
16,843
(INR Million)
2020E
131,367
13.0
58,934
72,433
55.1
104,687
26,680
11.6
20.3
2,182
1,313
1,342
163
24,691
11.9
18.8
5,629
23.5
18,884
11.9
14.4
39
18,845
Balance Sheet
Y/E March
Share Capital
Reserves
Minority Int
Networth
Loans
Deferred Liability
Capital Employed
Gross Block
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Goodwill
Non Curr Investments
Current Investments
Currents Assets
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Other Current Assets
Curr. Liab. & Prov.
Account Payables
Other Liabilities
Provisions
Net Current Assets
Net Assets
E: MOSL Estimates
2015
681
42,427
1,620
44,728
27,172
-312
71,587
22,890
7,821
15,069
2,246
40,441
343
1,514
31,464
10,717
8,046
8,942
3,682
76
19,489
10,869
7,886
734
11,974
71,587
2016
681
50,296
842
51,819
28,911
-413
80,318
26,383
9,020
17,363
437
45,741
344
1,529
35,684
13,070
11,180
7,459
3,857
118
20,780
10,372
10,064
345
14,904
80,317
2017
681
52,338
0
53,019
33,408
1,898
88,325
44,662
10,435
34,227
1,012
46,626
2,518
6,818
38,151
14,125
10,287
9,127
3,126
1,487
41,025
17,239
23,388
398
-2,874
88,326
2018E
681
67,146
0
67,827
37,511
-551
104,787
48,912
12,049
36,862
1,012
46,626
2,014
5,454
45,226
15,021
11,683
11,752
4,987
1,784
32,407
13,352
18,710
345
12,820
104,788
2019E
681
77,023
0
77,704
37,511
-709
114,505
53,162
13,910
39,252
1,012
46,626
1,611
4,363
52,873
16,555
13,053
15,448
5,676
2,141
31,231
15,919
14,968
345
21,642
114,506
(INR Million)
2020E
681
87,906
0
88,587
37,511
-887
125,211
57,412
16,092
41,320
1,012
46,626
1,289
3,491
61,789
17,995
14,756
20,003
6,466
2,569
30,315
17,995
11,975
345
31,474
125,212
1 November 2017
8

Godrej Consumer
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Debtor (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
2015
13.3
14.7
65.7
3.6
26.7
72.5
65.9
8.2
49.5
14.7
0.4
21.4
15.9
17.9
35
4.8
2016
16.8
18.3
76.1
4.9
28.9
57.5
52.9
8.1
41.8
12.7
0.5
23.7
16.5
18.3
49
4.7
2017
18.9
21.0
77.8
5.9
31.2
51.2
46.1
7.4
36.0
12.4
0.6
24.6
16.8
19.4
41
2.6
2018E
21.2
23.5
99.7
7.5
35.4
45.7
41.1
6.7
32.7
9.7
0.8
23.8
16.3
19.2
42
2.7
2019E
24.5
27.2
114.2
10.0
40.8
39.5
35.5
5.8
28.4
8.5
1.0
22.9
16.4
19.1
41
2.9
2020E
27.4
30.7
130.2
12.5
45.5
35.2
31.5
5.1
25.3
7.4
1.3
22.5
16.6
19.6
41
3.1
0.6
0.6
0.6
0.6
0.5
0.4
Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Net interest
Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
Extraordinary Items
Inc in FA
Free Cash Flow
Pur of Investments
Goodwill
CF from Investments
Inc in Debt
Dividend Paid
Other Income
Interest Paid
Other Item
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
E: MOSL Estimates
2015
13,567
370
-2,861
-791
10,285
-172
-955
9,330
0
-4,916
-6,043
3,437
-1,417
915
-1,002
-4,281
-2,348
1,894
7,048
8,942
2016
16,007
909
-3,361
-4,413
9,142
-3,335
-1,683
7,460
-1
-5,300
-10,319
1,740
-1,935
946
-1,190
133
-307
-1,483
8,942
7,459
2017
18,278
1,358
-3,792
19,445
35,289
1
-18,854
16,435
-2,173
-885
-21,912
4,497
-2,349
847
-1,452
-13,252
-11,709
1,668
7,459
9,127
2018E
20,709
1,425
-4,354
-13,068
4,712
0
-4,250
462
504
0
-3,747
4,103
-2,986
1,384
-1,538
697
1,660
2,626
9,127
11,752
2019E
23,935
1,290
-5,033
-5,126
15,065
0
-4,250
10,815
403
0
-3,847
0
-3,982
1,446
-1,425
-3,561
-7,522
3,696
11,752
15,448
(INR Million)
2020E
26,872
1,150
-5,629
-5,277
17,115
0
-4,250
12,865
322
0
-3,928
0
-4,977
1,505
-1,313
-3,848
-8,633
4,555
15,448
20,003
1 November 2017
9

Godrej Consumer
Corporate profile
Company description
GCPL is the second largest player in the INR90b
Toilet Soaps category, with a market share of
~10%. Company is the market leader in INR10b
hair dye/color segment, with a market share of
~35%. Its international business now constitutes
36% of consolidated revenue.
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Promoter
DII
FII
Others
Sep-17
63.3
2.2
27.8
6.7
Jun-17
63.3
2.2
28.0
6.6
Sep-16
63.3
1.7
29.0
6.1
Exhibit 3: Top holders
Holder Name
Baytree Investments (Mauritius) Pte Limited
First State Investments ICVC - Stewart
Investors Asia Pacific Leaders Fund
Arisaig India Fund Limited
LIC of India
New World Fund Inc
% Holding
2.5
2.0
2.0
1.4
1.2
Source: Capitaline
Note: FII Includes depository receipts
Source: Capitaline
Exhibit 4: Top management
Name
Adi Godrej
VIVEK GAMBHIR
V Srinivasan
Nisaba Godrej
Designation
Chairman & Wholetime Director
Managing Director
CFO & Company Secretary
Executive Director
Exhibit 5: Directors
Name
Aman Mehta
D Shivakumar
Nadir Godrej
Omkar Goswami
Ireena Vittal
Name
Bharat Doshi
Jamshyd N Godrej
Narendra Ambwani
Tanya Arvind Dubash
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Kalyaniwalla & Mistry
P M Nanabhoy & Co
Type
Statutory
Cost Auditor
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY18
FY19
FY20
MOSL
forecast
21.2
24.5
27.4
Consensus
forecast
21.6
25.4
29.8
Variation (%)
-1.7
-3.7
-8.0
Source: Bloomberg
Source: Capitaline
1 November 2017
10

Godrej Consumer
NOTES
1 November 2017
11

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Godrej Consumer
Disclosure of Interest Statement
Analyst ownership of the stock
Godrej Consumer
No
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1 November 2017
12