GODFRYPHLP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | GODFRYPHLP | Market Cap | 35,111 Cr. | Current Price | 2,251 ₹ | High / Low | 3,947 ₹ |
| Stock P/E | 27.5 | Book Value | 306 ₹ | Dividend Yield | 1.41 % | ROCE | 29.4 % |
| ROE | 22.2 % | Face Value | 2.00 ₹ | DMA 50 | 2,120 ₹ | DMA 200 | 2,426 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | -0.93 % | PAT Qtr | 354 Cr. | PAT Prev Qtr | 304 Cr. |
| RSI | 61.3 | MACD | 45.6 | Volume | 11,47,739 | Avg Vol 1Wk | 15,70,588 |
| Low price | 1,832 ₹ | High price | 3,947 ₹ | PEG Ratio | 0.78 | Debt to equity | 0.04 |
| 52w Index | 19.8 % | Qtr Profit Var | 5.95 % | EPS | 81.0 ₹ | Industry PE | 16.7 |
📊 Financials: GODFRYPHLP demonstrates strong fundamentals with ROE at 22.2% and ROCE at 29.4%, reflecting efficient capital utilization. EPS at ₹81.0 supports earnings strength. Debt-to-equity at 0.04 indicates a nearly debt-free balance sheet. Quarterly PAT improved to ₹354 Cr. from ₹304 Cr., showing steady growth momentum.
💹 Valuation: Current P/E of 27.5 is above the industry average of 16.7, suggesting premium valuation. PEG ratio of 0.78 indicates growth is fairly priced. Book value of ₹306 vs. CMP ₹2,251 highlights a steep P/B multiple, justified by profitability and efficiency metrics.
🏗️ Business Model: GODFRYPHLP operates in FMCG/tobacco with strong brand equity and distribution reach. Its competitive advantage lies in established market presence, pricing power, and consistent demand in a regulated industry.
📈 Entry Zone: Accumulation near ₹2,100–₹2,150 (close to 50 DMA support) offers favorable risk-reward. RSI at 61.3 indicates mildly overbought conditions, while MACD at 45.6 shows bullish momentum. Exit strategy near ₹2,400–₹2,450 with stop-loss around ₹2,050.
🕰️ Long-Term Holding: Strong fundamentals, efficient profitability, and dividend yield of 1.41% support long-term holding. Valuation premium and institutional selling pressure warrant cautious accumulation.
Positive
- Strong ROCE (29.4%) and ROE (22.2%)
- EPS of ₹81.0 supports earnings strength
- Debt-to-equity ratio at 0.04 ensures stability
- Quarterly PAT growth (+5.95%)
- Dividend yield of 1.41% adds steady returns
Limitation
- P/E (27.5) above industry average (16.7)
- High P/B ratio vs. book value
- RSI at 61.3 indicates mildly overbought conditions
- Institutional selling pressure (FII -0.24%, DII -0.93%)
Company Negative News
- Institutional selling pressure from both FII and DII
- Valuation concerns with P/E above industry average
Company Positive News
- Quarterly profit growth (+5.95%)
- Strong fundamentals with consistent dividend yield
Industry
- FMCG/tobacco sector trades at lower industry P/E (16.7)
- Sector demand resilient with long-term visibility
Conclusion
GODFRYPHLP is financially strong with efficient profitability and low debt, but trades at a premium valuation compared to industry peers. Entry near ₹2,100–₹2,150 is favorable, with profit booking advised near ₹2,400–₹2,450. Best suited for long-term investors seeking stable returns with cautious accumulation due to institutional selling pressure.