GODREJCP - Fundamental Analysis

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

Fundamental Rating: 3.7

🧾 Financial Health & Operational Efficiency

EPS (₹18.1) and Quarterly PAT of ₹432 Cr (vs ₹503 Cr): Significant drop—reflects cost inflation or timing impacts.

ROCE (19.2%) & ROE (15.2%): Solid, though not exceptional for a consumer giant—there’s room for operating leverage.

Debt-to-Equity (0.33): Acceptable leverage. Needs monitoring but not a red flag.

Dividend Yield (1.24%): Reasonable—steady cash returns for investors while balancing reinvestment.

💰 Valuation Overview

Metric Value Interpretation

P/E Ratio 66.2 Steep—trading at premium vs. industry average (59.2)

P/B Ratio ~10.35 Expensive—reflects brand power and intangible asset value

PEG Ratio 41.4 Extremely high—indicates earnings contraction or inflated valuation

Intrinsic Value — Estimated ~₹1,050–₹1,150 — current price slightly overvalued

⚠️ Valuation looks stretched. Unless growth resumes meaningfully, downside risk lingers.

🛍️ Business Model & Competitive Edge

Segment: Household and personal care—hair care, soaps, insecticides, grooming.

Strengths

Strong brand recall and distribution scale across urban & rural India.

Innovation pipeline and product diversification.

Risks

FII reduction (-0.19%) could reflect valuation discomfort or slowing global consumer sentiment.

Price sensitivity in mass markets & commodity cost impact.

📈 Technicals & Entry Strategy

Current Price: ₹1,211

DMA 50 / 200: ₹1,226 / ₹1,212 — consolidation at base zone

RSI (42.1): Slightly oversold—favorable for accumulation

MACD (0.02): Flat trend—momentum lacking, but poised for breakout

Volume Profile: Above average—some accumulation interest visible

🛒 Suggested Entry Zone: ₹1,140–₹1,180 Near 200 DMA support; consider staggered entry as RSI rebounds above 45 with volume uptick.

🧭 Long-Term Investment Guidance

GODREJCP is a legacy play on Indian consumption. Long-term confidence hinges on

Re-acceleration of revenue growth and EBITDA margins

Operating leverage improving ROE >18%

Category expansion and global market penetration

Efficient capital allocation with reduced debt

For portfolio stability and compounders in the FMCG space, it's a solid candidate—just mind the entry valuation.

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