GODFRYPHLP - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

📊 Financial Pulse & Profitability

EPS (₹206) and PAT of ₹294 Cr: Slight decline from the previous quarter, but still very robust—suggests strong earnings consistency.

ROCE (29.6%) & ROE (24.3%): Elite capital deployment efficiency. These figures signal exceptional returns and operational discipline.

Debt-to-Equity (0.03): Almost no leverage—financial strength is a hallmark here.

Dividend Yield (0.63%): Modest, but enough to sweeten long-term holding without signaling underinvestment.

💰 Valuation Overview

Metric Value Interpretation

P/E Ratio 40.4 Above industry PE (31.5)—growth premium baked in

P/B Ratio ~8.86 Rich valuation, implies strong asset efficiency

PEG Ratio 0.89 Reasonable—valuation aligned with growth expectations

Intrinsic Value — Estimated ₹8,300–₹8,600 — slightly undervalued

🚨 Trading near its fair zone, possibly with room for upside if earnings sustain and multiples hold.

🧬 Business Model & Moat

Vertical: Consumer products—likely in tobacco, FMCG, and branded consumer goods.

Strengths

High-margin products and strong brand recall.

Operating leverage as volumes scale across premium channels.

Risks

Negative FII movement (-0.40%) could suggest macro or ESG concerns.

Exposure to regulatory action in certain product categories.

📈 Technical Setup & Entry Zone

Current Price: ₹8,942

DMA 50 / 200: ₹8,561 / ₹7,009 — price comfortably above support

RSI (52.5): Neutral — entry possible without overheating risk

MACD (126): Bullish trend but tapering

Volume Trend: Slight uptick — supportive but not euphoric

🛒 Suggested Entry Zone: ₹8,400–₹8,700 This bracket provides proximity to DMA support and aligns with intrinsic estimates. Good for staggered entry.

🧭 Long-Term Holding Guidance

GODFRYPHLP shines for long-term compounding with

Stable earnings profile

Consistent high ROE/ROCE

Strategic brand moat and scalable distribution

Look for sustained profit growth and regulatory clarity to support re-rating. With its capital efficiency and near-zero debt, this could be a cornerstone in a defensive-growth portfolio.

Want me to put it side-by-side with ITC, VST, or even some FMCG majors for a sector benchmarking? I can draw up a growth-value matrix that separates the sizzle from the steak. 🧃📈 Let’s slice it up.

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