Godrej Consumer Products share price surged over 6 percent to Rs 568.15 on the NSE after bullish calls by brokerages despite the company reporting weak Q4FY20 results a day earlier.

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The consolidated net profit of the company plunged 75 percent year-on-year to Rs 229.90 crore in the fourth quarter ended March 2020 due to the disruptions in its business as a consequence of the coronavirus pandemic.

Its net sales slipped 12.22 percent YoY to Rs 2,133 crore during the quarter as against Rs 2,430 crore in the year-ago period.

However, brokerage firms Credit Suisse, Kotak Institutional Equities and Share Khan remain bullish on the stock.

Credit Suisse maintained outperform rating on the stock with a price target of Rs 630. However, in its report the brokerage warned that the company's business in Africa is worsening in Q1FY21.

Share Khan in its report said: "The company has gained 90 bps in market share in the household insecticide (HI) category and 60 bps market share in soaps category. With lockdown norms easing, Indonesia is expected to perform well."

It further added that the resurgence in HI category and market share gains in

other categories would help the company deliver good growth in the medium-to-long-term. The stock has corrected by 16 percent in the last three months and is trading at a discounted valuation of 31x its FY2022E earnings.

The brokerage maintained 'buy' call on the stock with revised price target at Rs 630.

Meanwhile, Kotak Institutional Equities believes that decent April quarter, recovery in production to 70 percent utilization and continued strong performance in Indonesia will lend hopes of a decent FY21E.

As a result, the brokerage retained 'buy' on the stock with unchanged target price at Rs 615.

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