⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GODFRYPHLP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | GODFRYPHLP | Market Cap | 31,129 Cr. | Current Price | 1,995 ₹ | High / Low | 3,947 ₹ |
| Stock P/E | 24.4 | Book Value | 306 ₹ | Dividend Yield | 1.59 % | ROCE | 29.4 % |
| ROE | 22.2 % | Face Value | 2.00 ₹ | DMA 50 | 2,463 ₹ | DMA 200 | 2,703 ₹ |
| Chg in FII Hold | 0.21 % | Chg in DII Hold | 0.09 % | PAT Qtr | 354 Cr. | PAT Prev Qtr | 304 Cr. |
| RSI | 27.4 | MACD | -158 | Volume | 2,88,194 | Avg Vol 1Wk | 2,99,193 |
| Low price | 1,507 ₹ | High price | 3,947 ₹ | PEG Ratio | 0.69 | Debt to equity | 0.04 |
| 52w Index | 20.0 % | Qtr Profit Var | 5.95 % | EPS | 81.0 ₹ | Industry PE | 20.5 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT increased from 304 Cr. to 354 Cr., showing steady growth with 5.95% YoY variation.
- Margins: ROE at 22.2% and ROCE at 29.4% reflect strong profitability and efficient capital utilization.
- Debt Ratios: Debt-to-equity at 0.04 indicates a low-leverage balance sheet.
- Cash Flows: Stable operating cash flows supported by FMCG and tobacco operations.
- Return Metrics: EPS at 81 ₹ highlights solid earnings power.
💹 Valuation Indicators
- P/E Ratio: 24.4, slightly above industry PE of 20.5, suggesting mild premium valuation.
- P/B Ratio: ~6.5 (Current Price / Book Value), reflecting premium valuation relative to assets.
- PEG Ratio: 0.69, attractive, showing growth potential at reasonable valuation.
- Intrinsic Value: Current price (1,995 ₹) is below recent highs, offering potential upside if growth sustains.
🏢 Business Model & Competitive Advantage
- Operates in FMCG and tobacco with strong brand presence and distribution network.
- Competitive advantage lies in established market share, brand loyalty, and diversified product portfolio.
- Resilient business model with steady demand and cash flow generation.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 1,850 ₹ – 1,950 ₹ (near support levels and below DMA 50).
- Long-Term Holding: Suitable for long-term investors seeking stable returns with moderate growth potential.
Positive
- Low debt-to-equity ratio.
- Strong ROE and ROCE.
- Consistent PAT growth.
- Healthy dividend yield of 1.59%.
Limitation
- P/E and P/B ratios indicate premium valuation.
- Quarterly profit growth is modest compared to peers.
- RSI at 27.4 suggests oversold conditions, reflecting weak momentum.
Company Negative News
- Weak technical indicators (RSI and MACD) show bearish sentiment.
Company Positive News
- Quarterly PAT growth and rising institutional inflows (FII +0.21%, DII +0.09%).
- Strong brand presence and resilient demand in FMCG and tobacco sector.
Industry
- FMCG and tobacco sector remains defensive with steady demand.
- Industry PE at 20.5 reflects moderate optimism and stable valuations.
Conclusion
- Godfrey Phillips is a fundamentally strong FMCG and tobacco player with robust profitability and brand strength.
- Valuation is slightly premium, but PEG ratio suggests reasonable growth-adjusted value.
- Best suited for long-term investors seeking stable returns, with entry near support levels for better risk-reward.
Would you like me to also contrast Godfrey Phillips with peers like ITC or VST Industries to highlight its relative positioning in the tobacco and FMCG sector?