Religare Capital has maintained 'Hold' on Godrej Consumer Products (GCPL) after the company declared its first quarter results. The stock broker fixed price target to Rs 1,350.

Commenting on the results, Religare Capital said, ''GCPL reported in line Q1FY16 net sales and EBITDA and adjusted PAT growth of 11% and 30% and 42% YoY, with domestic volume growth of 13% YoY. EBITDA margins increased by 220bps YoY to 14.9% (RCMLe 14.7%) aided by lower RM costs. The India and International businesses reported sales growth of 12% and 11% YoY.''

Commenting on the investment rationale, Religare Capital said, ''We expect continued RM cost benefits to support margins and maintain our earnings CAGR estimate of 18% over FY15 -FY18. With early signs of improvement in domestic consumer demand and cost transformation programmes in the international business, we marginally upgrade earnings for Fy16/FY17 with an earnings CAGR of 18% for  FY15-FY18. However, valuations at 37.7x/32.3x FY16 E/ FY17E EPS hold limited room for upside-maintain HOLD with a  Sep'16 TP of Rs 1,350.''

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