Shares of ​Godrej Consumer Products rose to two week highs. Know why

Godrej Consumer Products Ltd., a maker of home insecticides, soaps and hair products, rose to its highest in two weeks after the central bank allowed foreign investors to buy more shares in the company.

The Reserve Bank of India on Friday, 28 August 2015, allowed an increase in foreign investment ceiling to 40% of Godrej Consumer's paid-up capital from earlier 35%.

As a consequence, Godrej Consumer jumped 40.50 rupees, or 3.1 percent, to 1,347.90 rupees on National Stock Exchange, where 1.41 lakh shares were traded versus the 5-day average of 2.49 lakh shares.

Godrej Consumer has seen is market capitalisation rise 37 percent in the past one year to 45,600 crore rupees. The stock is quoting a whopping 10 times its book value of 132 rupees and the company has seen its sales grow 32 percent compounded over the past five years.

Image credit: Indiatimes