GODREJIND - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.3

📊 Financial Snapshot & Efficiency

EPS (₹29.1) and Quarterly PAT (₹183 Cr): Marginally lower than prior quarter, yet notable YoY profit surge (+822%)—could include non-recurring gains.

ROCE (7.83%) & ROE (9.64%): Below industry benchmark—signals inefficient capital deployment and muted profitability.

Debt-to-Equity (3.75): Elevated leverage—stands out as a key red flag. Higher financial risk in case of interest rate tightening or operational headwinds.

Dividend Yield (0.00%): No returns to shareholders—indicates reinvestment strategy, but can also reflect capital strain.

💰 Valuation Dashboard

Metric Value Interpretation

P/E Ratio 42.9 Steep vs. industry PE (24.9)—optimism already priced in

P/B Ratio ~3.71 Acceptable, but not cheap given weak ROE

PEG Ratio 4.49 Very high—valuation outpacing realistic growth outlook

Intrinsic Value — Estimated ₹950–₹1,020 — current price looks overvalued

⚠️ Premium valuation with subpar returns is a mismatch. Without a catalyst, upside may be capped.

🏢 Business Model & Strategic Insight

Nature of Business: Godrej Industries is a diversified holding entity—spanning chemicals, real estate (via Godrej Properties), consumer goods (via Godrej Consumer), and agribusiness.

Strengths

Strong brand legacy and exposure to high-growth verticals.

Holding structure provides access to multiple operating subsidiaries.

Risks

Complexity in evaluating consolidated value.

Poor standalone financial metrics despite group strength.

FII outflows (-1.31%) indicate lack of confidence at current valuations.

📈 Technical View & Entry Zone

Current Price: ₹1,117

DMA 50 / 200: ₹1,171 / ₹1,095 — price trending below short-term average

RSI (37.7): Near oversold — signs of bottoming or continued weakness

MACD (-22.6): Bearish — trend reversal not confirmed

Volume: Mildly above average — potential early accumulation

🛒 Suggested Entry Zone: ₹950–₹1,020 Closer to intrinsic value. Let RSI recover above 45 with improving MACD signals before committing aggressively.

🧭 Long-Term Holding Perspective

Godrej Industries can work as a proxy to invest across multiple growth stories within the Godrej umbrella. That said, standalone performance must improve before it becomes a conviction bet

Watch for deleveraging and ROE improvement

Rebound in profit consistency without one-offs

Re-rating potential from Godrej Properties or Consumer stake monetization

A decent pick if you're playing the long game through a conglomerate lens—but tread carefully if you're seeking lean efficiency or immediate upside.

Need help charting this against Godrej Properties or Godrej Consumer for a split exposure play? I can decode the trio’s contribution and build you a Godrej synergy map 🔬📊 Let’s piece it together.

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