GODREJCP - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | GODREJCP | Market Cap | 1,18,278 Cr. | Current Price | 1,155 ₹ | High / Low | 1,309 ₹ |
| Stock P/E | 84.7 | Book Value | 78.8 ₹ | Dividend Yield | 1.73 % | ROCE | 19.3 % |
| ROE | 14.9 % | Face Value | 1.00 ₹ | DMA 50 | 1,189 ₹ | DMA 200 | 1,191 ₹ |
| Chg in FII Hold | -2.82 % | Chg in DII Hold | 2.91 % | PAT Qtr | 431 Cr. | PAT Prev Qtr | 356 Cr. |
| RSI | 38.4 | MACD | -13.1 | Volume | 26,40,744 | Avg Vol 1Wk | 18,81,412 |
| Low price | 980 ₹ | High price | 1,309 ₹ | PEG Ratio | -39.2 | Debt to equity | 0.33 |
| 52w Index | 53.3 % | Qtr Profit Var | 26.1 % | EPS | 13.1 ₹ | Industry PE | 46.7 |
📊 Godrej Consumer Products (GODREJCP) shows strong revenue growth and institutional support from DIIs, but valuations are stretched with a very high P/E and negative PEG ratio. Technical indicators (RSI at 38.4, MACD negative, price below both 50 & 200 DMA) suggest weak momentum. It is a cautious candidate for swing trading, suitable only with strict stop-loss levels.
💡 Optimal Entry Price: Around 1,120–1,140 ₹ (near support zone).
📈 Exit Strategy: If already holding, consider booking profits near 1,250–1,280 ₹ resistance, or exit if price falls below 1,100 ₹.
Positive ✅
- ROCE (19.3%) and ROE (14.9%) indicate moderate efficiency.
- Quarterly PAT growth from 356 Cr. to 431 Cr. (+26.1%) shows strong earnings momentum.
- DII holdings increased (+2.91%), reflecting strong domestic institutional confidence.
- Dividend yield of 1.73% provides moderate income stability.
- EPS of 13.1 ₹ supports profitability visibility.
Limitation ⚠️
- High P/E of 84.7 compared to industry average of 46.7 indicates overvaluation.
- PEG ratio of -39.2 suggests poor valuation relative to growth.
- Price trading below both 50 DMA (1,189 ₹) and 200 DMA (1,191 ₹), showing weak momentum.
- MACD negative (-13.1) signals bearish undertone.
- RSI at 38.4 indicates oversold conditions but also weak momentum.
- FII holdings declined (-2.82%), showing reduced foreign investor confidence.
Company Negative News 📉
- No major negative news reported, but weak technical signals and declining FII interest are concerns.
Company Positive News 📈
- Strong quarterly profit growth (+26.1%).
- Improved domestic institutional support (DII buying).
Industry 🌐
- Industry P/E at 46.7 highlights FMCG sector trades at a premium.
- Consumer goods sector benefits from steady demand and defensive characteristics.
Conclusion 📝
Godrej Consumer Products is fundamentally strong with solid earnings growth and institutional support, but high valuations and weak technical indicators limit short-term upside. Entry near 1,120–1,140 ₹ offers a safer risk-reward setup. Exit around 1,250–1,280 ₹ or below 1,100 ₹ if momentum weakens. Suitable for cautious swing trades with close monitoring of institutional flows and technical signals.