GODREJIND - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | GODREJIND | Market Cap | 32,301 Cr. | Current Price | 959 ₹ | High / Low | 1,392 ₹ |
| Book Value | 52.7 ₹ | Dividend Yield | 0.00 % | ROCE | 8.13 % | ROE | 9.04 % |
| Face Value | 1.00 ₹ | DMA 50 | 927 ₹ | DMA 200 | 1,009 ₹ | Chg in FII Hold | -0.39 % |
| Chg in DII Hold | 0.18 % | PAT Qtr | -12.8 Cr. | PAT Prev Qtr | 99.0 Cr. | RSI | 58.5 |
| MACD | 25.7 | Volume | 87,576 | Avg Vol 1Wk | 1,40,005 | Low price | 744 ₹ |
| High price | 1,392 ₹ | Debt to equity | 6.26 | 52w Index | 33.2 % | Qtr Profit Var | -6,520 % |
| EPS | -0.60 ₹ | Industry PE | 27.1 |
📊 Financials: GODREJIND shows weak fundamentals with ROE at 9.04% and ROCE at 8.13%, reflecting poor efficiency. EPS at -₹0.60 indicates losses, while quarterly PAT fell sharply to -₹12.8 Cr. from ₹99 Cr., highlighting severe earnings volatility. Debt-to-equity at 6.26 signals heavy leverage, raising financial risk.
💹 Valuation: P/E is not meaningful due to negative earnings. Book value of ₹52.7 vs. CMP ₹959 shows an extremely high P/B multiple, unjustified by fundamentals. PEG ratio unavailable, further limiting valuation clarity. Industry P/E at 27.1 highlights peers trading at healthier multiples.
🏗️ Business Model: GODREJIND operates as a diversified holding company with exposure to chemicals, real estate, and consumer products. Competitive advantage lies in group synergies, but weak profitability and high leverage undermine overall health.
📈 Entry Zone: Safer accumulation only near ₹900–₹920 (close to DMA50 support) for speculative investors. RSI at 58.5 indicates neutral momentum, while MACD at 25.7 shows mild bullishness. Exit strategy near ₹1,000–₹1,020 with strict stop-loss around ₹880.
🕰️ Long-Term Holding: Weak fundamentals, high debt, and negative earnings make GODREJIND unsuitable for long-term holding. Best considered for speculative short-term trades only.
Positive
- Group synergies across diversified businesses
- Stock trading near DMA50 support
- Incremental increase in DII holdings (+0.18%)
Limitation
- Negative EPS (-₹0.60)
- Quarterly PAT loss (-₹12.8 Cr.)
- High debt-to-equity ratio (6.26)
- Weak ROE (9.04%) and ROCE (8.13%)
- FII holdings decreased (-0.39%)
Company Negative News
- Sharp quarterly loss raises concerns about sustainability
- High leverage increases financial risk
Company Positive News
- DII holdings increased (+0.18%)
- Group diversification provides some stability
Industry
- Industry P/E at 27.1 reflects moderate valuations
- Peers show stronger fundamentals compared to GODREJIND
Conclusion
GODREJIND is financially weak with high leverage and negative earnings, making it unsuitable for long-term investors. Entry near ₹900–₹920 is only for speculative trades, with profit booking near ₹1,000–₹1,020 and strict stop-loss around ₹880. Long-term holding is not recommended due to poor fundamentals.