GODREJCP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | GODREJCP | Market Cap | 1,04,713 Cr. | Current Price | 1,024 ₹ | High / Low | 1,309 ₹ |
| Stock P/E | 67.2 | Book Value | 76.7 ₹ | Dividend Yield | 1.96 % | ROCE | 20.9 % |
| ROE | 19.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,071 ₹ | DMA 200 | 1,137 ₹ |
| Chg in FII Hold | -1.47 % | Chg in DII Hold | 1.51 % | PAT Qtr | 416 Cr. | PAT Prev Qtr | 431 Cr. |
| RSI | 43.5 | MACD | -16.0 | Volume | 19,92,892 | Avg Vol 1Wk | 21,36,493 |
| Low price | 967 ₹ | High price | 1,309 ₹ | PEG Ratio | 80.1 | Debt to equity | 0.38 |
| 52w Index | 16.6 % | Qtr Profit Var | 63.6 % | EPS | 14.8 ₹ | Industry PE | 44.2 |
📊 Financials: Godrej Consumer Products (GodrejCP) shows stable fundamentals with quarterly PAT of ₹416 Cr. versus ₹431 Cr. previously, reflecting slight contraction. Debt-to-equity is moderate at 0.38, manageable but higher than FMCG peers. ROE at 19.2% and ROCE at 20.9% are healthy, indicating efficient capital utilization. Cash flows remain steady, supported by strong demand in personal care and household products.
💹 Valuation: The stock trades at a P/E of 67.2, significantly above the industry average of 44.2, suggesting premium valuation. P/B ratio is ~13.3 (Price ₹1024 / Book Value ₹76.7), which is high. PEG ratio of 80.1 indicates stretched growth-adjusted valuation. Intrinsic value analysis suggests the stock is overvalued at current levels, with limited upside unless earnings accelerate.
🏢 Business Model: GodrejCP operates in FMCG, focusing on personal care, hair care, and household products. Its competitive advantage lies in strong brand recognition, wide distribution, and innovation in emerging markets. The company benefits from steady demand and consumer loyalty, though competition in FMCG remains intense.
📈 Entry Zone: With DMA 50 at ₹1071 and DMA 200 at ₹1137, the stock is trading below both averages, reflecting weakness. RSI at 43.5 indicates neutral-to-weak momentum, while MACD at -16.0 confirms bearishness. Accumulation near ₹950–₹1000 offers a favorable entry zone for long-term investors.
Positive
- 🚀 Strong ROE (19.2%) and ROCE (20.9%).
- 💰 Dividend yield of 1.96% supports income investors.
- 📈 Strong brand recognition and diversified FMCG portfolio.
- 🌍 Increase in DII holdings (+1.51%) reflects institutional confidence.
Limitation
- ⚠️ High P/E (67.2) compared to industry average (44.2).
- 📉 PEG ratio of 80.1 indicates stretched valuation.
- 🔄 Quarterly PAT declined (₹416 Cr. vs ₹431 Cr.).
- 📉 Debt-to-equity ratio at 0.38 is higher than FMCG peers.
Company Negative News
- ⚠️ No major recent negative news, though profit contraction and high valuations are concerns.
Company Positive News
- ✅ Strong brand equity and diversified product portfolio.
- 📈 Increased DII holdings show institutional support.
Industry
- 🛒 FMCG industry benefits from steady demand and brand-driven pricing power.
- 📊 Industry P/E at 44.2 reflects optimism and growth potential.
- 🌍 Competition remains intense, impacting margins across the sector.
Conclusion
GodrejCP demonstrates solid fundamentals with strong brand equity, decent return metrics, and dividend support. However, valuations are stretched on P/E, P/B, and PEG ratios, while profit growth remains flat. Entry around ₹950–₹1000 is favorable, and long-term holding is recommended for investors seeking exposure to a premium FMCG brand with consistent demand and institutional backing.
Would you like me to extend this with a peer comparison against other FMCG companies or a technical analysis focusing on chart momentum and support levels?