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ICRA Equity assigns fundamental grade 4 to Godrej Industries

10 Aug 2011 Evaluate

ICRA Equity Research has assigned fundamental grade of 4 for Godrej Industries (GIL) indicating strong fundamentals.

The rationale behind the rating is the company’s oleo-chemicals division which reported a healthy 28% YoY growth to Rs 278 crore in Q1 FY 2011-12, backed by a strong 49% YoY exports growth during the quarter. The EBIT margins for the division were impacted by the annual plant shutdown expenses. Although volume growth is expected to moderate due to capacity constraints, we expect the division to report healthy performance for the year on account of strong realizations supported by stable global demand.

The company’s profit for the quarter ended June 30, 2011 surged by 30.22% at Rs 17.45 crore as compared to Rs 13.40 crore for the corresponding quarter last year. Its total income has grown by 28.05% at Rs 309.86 crore for the quarter under review from Rs 241.99 crore for the same quarter last year.

Godrej Industries Share Price

926.95 8.25 (0.90%)
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