GODFRYPHLP - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials Breakdown

Profitability

ROE: 22.2% and ROCE: 29.4% — excellent, indicating strong capital efficiency and operational strength.

EPS: ₹76.0 — robust earnings base, with quarterly PAT rising to ₹365 Cr from ₹255 Cr, a 30.6% jump.

Debt-to-Equity: 0.04 — virtually debt-free, enhancing resilience and flexibility.

Dividend & Book Value

Dividend Yield: 0.91% — modest but consistent.

Book Value: ₹283 — implies a P/B ratio of ~12.3, which is high but justified by premium profitability.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 45.4 Above industry average (33.4) — reflects premium pricing

PEG Ratio 1.28 Fair — growth expectations are priced in

Intrinsic Value ~₹3,200–₹3,300 CMP slightly above fair value zone

Valuation is rich but supported by strong earnings and brand strength.

🚬 Business Model & Competitive Edge

Sector: Tobacco & FMCG — manufacturing and trading of cigarettes, tobacco, and retail products.

Strengths

Iconic brands like Four Square, Red & White, and Marlboro (under license).

Diversified revenue streams including retail and FMCG.

High ROCE and ROE reflect pricing power and efficient capital use.

DII holding up (+0.59%) — positive domestic sentiment.

Challenges

FII holding down (-1.53%) — cautious foreign stance, possibly due to regulatory risks.

Government exploring additional levies on tobacco products

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High valuation and low dividend yield may limit passive income appeal.

📉 Technicals & Entry Zone

Current Price: ₹3,494

DMA 50: ₹3,317 | DMA 200: ₹2,661 — bullish trend intact

RSI: 51.3 — neutral zone

MACD: Positive — momentum strong

📌 Suggested Entry Zone: ₹3,200–₹3,350

A dip near the 50 DMA would offer a better margin of safety for accumulation.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, brand dominance, and low debt make Godfrey Phillips a high-quality long-term play.

Accumulate on dips: Ideal for investors seeking exposure to high-margin consumer staples with regulatory awareness.

You can explore Godfrey Phillips’ stock overview and financials or check its live share price and technicals for deeper insights. Let me know if you'd like a peer comparison with ITC or VST Industries.

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