GODREJCP - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | GODREJCP | Market Cap | 1,09,190 Cr. | Current Price | 1,067 ₹ | High / Low | 1,309 ₹ |
| Stock P/E | 78.2 | Book Value | 78.8 ₹ | Dividend Yield | 1.87 % | ROCE | 19.3 % |
| ROE | 14.9 % | Face Value | 1.00 ₹ | DMA 50 | 1,099 ₹ | DMA 200 | 1,153 ₹ |
| Chg in FII Hold | -1.47 % | Chg in DII Hold | 1.51 % | PAT Qtr | 431 Cr. | PAT Prev Qtr | 356 Cr. |
| RSI | 45.7 | MACD | 4.40 | Volume | 17,68,931 | Avg Vol 1Wk | 10,10,253 |
| Low price | 967 ₹ | High price | 1,309 ₹ | PEG Ratio | -36.2 | Debt to equity | 0.33 |
| 52w Index | 29.3 % | Qtr Profit Var | 26.1 % | EPS | 13.1 ₹ | Industry PE | 42.5 |
📊 Financials: GODREJCP shows moderate fundamentals with ROE at 14.9% and ROCE at 19.3%, reflecting average efficiency. EPS at ₹13.1 is modest relative to price levels. Quarterly PAT rose to ₹431 Cr. from ₹356 Cr., indicating earnings growth. Debt-to-equity at 0.33 suggests manageable leverage.
💹 Valuation: Current P/E of 78.2 is significantly higher than the industry average of 42.5, suggesting overvaluation. PEG ratio of -36.2 highlights weak growth prospects relative to valuation. Book value of ₹78.8 vs. CMP ₹1,067 shows a steep P/B multiple, justified only by brand strength and sector positioning.
🏗️ Business Model: GODREJCP operates in FMCG with strong brand equity and diversified product portfolio across personal care and household categories. Its competitive advantage lies in established distribution, consumer trust, and pricing power.
📈 Entry Zone: Accumulation near ₹1,050–₹1,070 (close to DMA50 support) offers favorable risk-reward. RSI at 45.7 indicates neutral momentum, while MACD at 4.40 shows mild bullishness. Exit strategy near ₹1,150–₹1,160 with stop-loss around ₹1,020.
🕰️ Long-Term Holding: Strong brand fundamentals support long-term holding, but high valuation and weak growth metrics limit aggressive upside. Suitable for cautious investors seeking FMCG exposure with moderate risk.
Positive
- Strong brand equity and diversified FMCG portfolio
- Quarterly PAT growth (+26.1%)
- Dividend yield of 1.87% provides steady returns
- DII holdings increased (+1.51%)
Limitation
- High P/E (78.2) vs. industry average (42.5)
- Negative PEG ratio (-36.2) signals weak growth outlook
- Modest ROE (14.9%) and ROCE (19.3%)
- FII holdings decreased (-1.47%)
Company Negative News
- Institutional selling pressure from FII (-1.47%)
- Valuation concerns with P/E significantly above peers
Company Positive News
- Quarterly profit growth (+26.1%)
- DII interest increased (+1.51%)
Industry
- FMCG industry P/E at 42.5 reflects premium valuations
- Sector supported by steady demand and consumer trust
Conclusion
GODREJCP is fundamentally stable with strong brand presence and dividend yield, but trades at a steep premium relative to industry peers. Entry near ₹1,050–₹1,070 is favorable, with profit booking advised near ₹1,150–₹1,160. Best suited for cautious investors seeking FMCG exposure with moderate risk.