Thursday, May 13, 2010

CMP / Reco Price : 340
Short Term Target : 400
Time Span : 6 months

Godrej Consumer Products Limited manufactures personal care, hair care, household care and fabric care products. The Company's products include toilet soaps, cosmetics, shaving creams, talcum powder, household cleaners and fabric detergents.
Whats Buzzing:
Godrej Consumer Products (GCPL) and Sara Lee Corporation have reached an agreement whereby GCPL will buy the remaining 51% stake in Godrej Sara Lee (GSL) for Euro 185 million (Rs1,050 crore). The deal has come in at relatively cheap valuations for GCPL. GCPL has fund raising plans up to a maximum of Rs3,000 crore via debt and equity with an optimum debt equity ratio of 1:1. These funds will be used to finance GSL and other acquisitions recently done by the company.