GODREJCP - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.5
| Stock Code | GODREJCP | Market Cap | 1,03,261 Cr. | Current Price | 1,009 ₹ | High / Low | 1,309 ₹ |
| Stock P/E | 66.3 | Book Value | 76.7 ₹ | Dividend Yield | 1.98 % | ROCE | 20.9 % |
| ROE | 19.2 % | Face Value | 1.00 ₹ | DMA 50 | 1,043 ₹ | DMA 200 | 1,118 ₹ |
| Chg in FII Hold | -1.47 % | Chg in DII Hold | 1.51 % | PAT Qtr | 416 Cr. | PAT Prev Qtr | 431 Cr. |
| RSI | 44.6 | MACD | -6.01 | Volume | 15,14,457 | Avg Vol 1Wk | 11,23,946 |
| Low price | 967 ₹ | High price | 1,309 ₹ | PEG Ratio | 79.0 | Debt to equity | 0.38 |
| 52w Index | 12.3 % | Qtr Profit Var | 63.6 % | EPS | 14.8 ₹ | Industry PE | 41.0 |
Godrej Consumer Products (GODREJCP) shows moderate fundamentals with ROCE (20.9%) and ROE (19.2%), supported by a dividend yield of 1.98%. However, valuation is stretched with a high P/E of 66.3 compared to industry average (41.0) and an extremely high PEG ratio of 79.0, indicating expensive growth. The current price (₹1,009) is below both the 50 DMA (₹1,043) and 200 DMA (₹1,118), reflecting bearish momentum. RSI at 44.6 and MACD at -6.01 confirm weakness. Institutional activity is mixed, with FII holdings decreasing (-1.47%) but DII holdings increasing (+1.51%). Overall, GODREJCP is a cautious swing trade candidate with limited upside.
🎯 Optimal Entry Price
Entry around ₹980–₹1,000 is favorable, aligning with support near recent lows.
📈 Exit Strategy
If already holding, consider exiting near ₹1,080–₹1,100 (resistance zone close to 200 DMA). A strict stop-loss below ₹970 is advisable to manage risk.
✅ Positive
- 📌 Strong ROCE (20.9%) and ROE (19.2%).
- 📌 Dividend yield of 1.98% provides steady income.
- 📌 EPS of ₹14.8 supports earnings consistency.
- 📌 DII holdings increased (+1.51%), showing domestic institutional confidence.
- 📌 Quarterly profit variation (+63.6%) indicates earnings momentum.
⚠️ Limitation
- 📌 Current price below both DMA 50 and DMA 200 indicates bearish trend.
- 📌 RSI and MACD confirm weak momentum.
- 📌 High P/E (66.3) compared to industry average (41.0) suggests overvaluation.
- 📌 Extremely high PEG ratio (79.0) indicates expensive growth.
- 📌 FII holdings decreased (-1.47%), showing reduced foreign investor confidence.
- 📌 Debt-to-equity ratio of 0.38 is relatively high for FMCG peers.
📰 Company Negative News
- 📌 No major negative news reported, but valuation and technical weakness persist.
🌟 Company Positive News
- 📌 Domestic institutional investors increased stake, showing confidence.
- 📌 Dividend yield supports shareholder returns.
🏭 Industry
- 📌 Industry P/E of 41.0 is lower than GODREJCP’s 66.3, suggesting relative overvaluation.
- 📌 FMCG sector remains resilient with steady demand.
🔎 Conclusion
Godrej Consumer Products is fundamentally decent but technically weak for swing trading. Entry near ₹980–₹1,000 offers limited upside, with profit booking advisable near ₹1,080–₹1,100. A strict stop-loss below ₹970 is essential to manage risk effectively.
Would you like me to extend this with a peer benchmarking analysis or a sector overlay comparison to strengthen the swing trade outlook?