India's Godrej Consumer Products drops after Raymond deal

Raymond

28/04/2023 06:23

(Adds Raymond's share move, milestone)
    ** Shares of Godrej Consumer Products Ltd  GOCP.NS  fall
3.6% to 919.2 rupees
    ** GOCP to buy Raymond Ltd's  RYMD.NS  consumer goods
business, including popular brands such as Park Avenue deodorant
and Kamasutra condoms, for 28.25 bln rupees ($345.48 mln)
    ** RYMD's shares drop 7.2%; if losses hold, co set to snap
its longest winning streak of 10 straight sessions     
    ** "Male grooming is a tough category with low brand loyalty
& high competition. Sexual wellness too is a completely new line
of business for Godrej Consumer, where there are strong
healthcare firms in competition" - Jefferies analysts
    ** "Past deals by GCPL, mainly in overseas market have seen
mixed results, company is grappling to resolve issues in Africa
(& even Indonesia)" - Jefferies
    ** GOCP top loser in Nifty FMCG index  .NIFTYFMCG , which is
down 0.4% 
    ** Trading volume at ~700,000 shares, below 30-day avg as of
9:30 a.m. IST 
    ** Stock down ~4% vs 5% gain in Jan-March, up 6.4% YTD vs
6.7% rise in Nifty FMCG


 (Reporting by Biplob Kumar Das in Bengaluru)
 ((Biplobkumar.das@thomsonreuters.com))