⚠ 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.
GODREJCP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | GODREJCP | Market Cap | 1,07,528 Cr. | Current Price | 1,051 ₹ | High / Low | 1,309 ₹ |
| Stock P/E | 77.0 | Book Value | 78.8 ₹ | Dividend Yield | 1.91 % | ROCE | 19.3 % |
| ROE | 14.9 % | Face Value | 1.00 ₹ | DMA 50 | 1,155 ₹ | DMA 200 | 1,182 ₹ |
| Chg in FII Hold | -2.82 % | Chg in DII Hold | 2.91 % | PAT Qtr | 431 Cr. | PAT Prev Qtr | 356 Cr. |
| RSI | 32.8 | MACD | -41.8 | Volume | 11,33,523 | Avg Vol 1Wk | 26,77,637 |
| Low price | 1,020 ₹ | High price | 1,309 ₹ | PEG Ratio | -35.7 | Debt to equity | 0.33 |
| 52w Index | 10.9 % | Qtr Profit Var | 26.1 % | EPS | 13.1 ₹ | Industry PE | 43.1 |
📊 Core Financials
- Quarterly PAT increased from ₹356 Cr. to ₹431 Cr., showing strong growth momentum.
- ROCE at 19.3% and ROE at 14.9% → moderate efficiency compared to FMCG peers.
- Debt-to-equity ratio of 0.33 → manageable leverage.
- Cash flows supported by FMCG operations, though margins remain under pressure.
💹 Valuation Indicators
- P/E Ratio: 77.0 vs Industry PE of 43.1 → significantly overvalued.
- P/B Ratio: ~13.3x (₹1051 / ₹78.8) → premium valuation.
- PEG Ratio: -35.7 → negative, indicating weak growth expectations.
- Intrinsic Value: Current price above fair zone, reflecting optimism in FMCG demand.
🏢 Business Model & Competitive Advantage
- Strong FMCG player with diversified portfolio in personal care and household products.
- Brand recognition and distribution strength provide competitive advantage.
- Exposure to consumer demand cycles and raw material costs affects profitability.
📈 Technical & Entry Zone
- Current Price: ₹1051, below 50 DMA (₹1155) and 200 DMA (₹1182).
- RSI: 32.8 → oversold zone, potential rebound.
- MACD: -41.8 → bearish momentum.
- Entry Zone: Attractive accumulation between ₹1000–₹1020.
- Long-Term Holding: Suitable for investors with 3–5 year horizon, given FMCG sector resilience.
✅ Positive
- Strong quarterly PAT growth of 26.1%.
- DII holdings increased by 2.91%, showing institutional confidence.
- Dividend yield of 1.91% provides steady income.
⚠️ Limitation
- High P/E and P/B ratios reflect expensive valuation.
- Negative PEG ratio indicates weak growth visibility.
📉 Company Negative News
- Decline in FII holdings (-2.82%).
- Stock corrected from 52-week high of ₹1309.
📈 Company Positive News
- Quarterly PAT growth of 26.1% shows strong momentum.
- DII inflows indicate domestic institutional support.
🏭 Industry
- FMCG sector supported by strong consumer demand and brand loyalty.
- Industry PE at 43.1 indicates investor confidence in FMCG space.
🔎 Conclusion
GODREJCP is a strong FMCG player with brand strength and steady growth, but currently trading at premium valuations.
Despite short-term oversold signals, high multiples and negative PEG suggest caution.
Best accumulated around ₹1000–₹1020 for investors with a 3–5 year horizon, while monitoring profitability sustainability.