GODREJCP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | GODREJCP | Market Cap | 1,04,105 Cr. | Current Price | 1,018 ₹ | High / Low | 1,309 ₹ |
| Stock P/E | 74.6 | Book Value | 78.8 ₹ | Dividend Yield | 1.97 % | ROCE | 19.3 % |
| ROE | 14.9 % | Face Value | 1.00 ₹ | DMA 50 | 1,145 ₹ | DMA 200 | 1,179 ₹ |
| Chg in FII Hold | -2.82 % | Chg in DII Hold | 2.91 % | PAT Qtr | 431 Cr. | PAT Prev Qtr | 356 Cr. |
| RSI | 28.2 | MACD | -45.5 | Volume | 13,63,265 | Avg Vol 1Wk | 13,73,364 |
| Low price | 1,013 ₹ | High price | 1,309 ₹ | PEG Ratio | -34.5 | Debt to equity | 0.33 |
| 52w Index | 1.59 % | Qtr Profit Var | 26.1 % | EPS | 13.1 ₹ | Industry PE | 41.6 |
📊 Financials: Godrej Consumer Products (GodrejCP) shows moderate profitability with ROE at 14.9% and ROCE at 19.3%. Debt-to-equity is manageable at 0.33, ensuring financial stability. Quarterly PAT improved to 431 Cr from 356 Cr, reflecting strong earnings growth. EPS of 13.1 ₹ supports earnings, though margins remain modest.
💰 Valuation: Current P/E of 74.6 is significantly above the industry average of 41.6, suggesting premium valuation. P/B ratio (~12.9) is high compared to book value. PEG ratio of -34.5 indicates weak growth alignment with earnings. Dividend yield of 1.97% adds shareholder value but does not offset premium valuations.
🏢 Business Model: GodrejCP operates in the FMCG sector with diversified exposure across personal care, household products, and hair care. Its competitive advantage lies in strong brand equity, wide distribution network, and consistent demand in consumer staples.
📈 Entry Zone: Current price of 1,018 ₹ is below both 50 DMA (1,145 ₹) and 200 DMA (1,179 ₹), with RSI at 28.2 and MACD negative (-45.5), indicating oversold conditions. Entry zone: 1,000–1,050 ₹ for accumulation.
🕰 Long-Term Holding: With strong brand presence, diversified portfolio, and sectoral resilience, GodrejCP is suitable for long-term holding. However, premium valuations and weak PEG ratio require cautious accumulation.
Positive
- Strong brand equity and diversified FMCG portfolio
- Quarterly PAT growth (26.1% variation)
- Dividend yield of 1.97% adds value
- DII holdings increased (+2.91%)
Limitation
- High P/E (74.6) compared to industry average
- P/B ratio (~12.9) significantly above book value
- PEG ratio (-34.5) reflects weak growth alignment
- ROE (14.9%) moderate compared to sector leaders
Company Negative News
- Decline in FII holdings (-2.82%)
- Technical weakness with RSI and MACD signals
Company Positive News
- Quarterly PAT improved from 356 Cr to 431 Cr
- DII holdings increased (+2.91%)
- Dividend yield supports investor confidence
Industry
- FMCG sector enjoys consistent demand and premium valuations
- Industry P/E at 41.6 reflects strong investor appetite
- Consumer staples provide resilience against market cycles
Conclusion
GodrejCP is a fundamentally strong FMCG player with brand equity, diversified portfolio, and consistent earnings growth. While valuations are premium and PEG ratio signals weak growth alignment, oversold technicals provide an entry opportunity. Accumulation in the 1,000–1,050 ₹ zone is recommended for long-term investors seeking stability and compounding in consumer staples.