ScoreWhy is Godrej Consumer Products Ltd ?
1
High Management Efficiency with a high ROE of 15.50%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Poor long term growth as Net Sales has grown by an annual rate of 6.83% and Operating profit at 6.32% over the last 5 years
4
Negative results in Dec 24
- DEBTORS TURNOVER RATIO(HY) Lowest at 8.47 times
- OPERATING PROFIT TO NET SALES(Q) Lowest at 20.06%
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 295.10 cr
5
Stock is technically in a Mildly Bullish range
- The technical trend has improved from Mildly Bearish on 09-Apr-25 and has generated -1.83% returns since then
- A key technical factor - Bollinger Band has been Bullish since 09 Apr 2025
6
With ROE of 16.7, it has a Very Expensive valuation with a 10.4 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -0.93%, its profits have risen by 4% ; the PEG ratio of the company is 16.6
7
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -9.96% over the previous quarter and currently hold 53.04% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Godrej Consumer should be less than 10%
- Overall Portfolio exposure to FMCG should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Godrej Consumer for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Godrej Consumer
-0.83%
-0.03
28.07%
SENSEX
0.45%
0.03
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.83%
EBIT Growth (5y)
6.32%
EBIT to Interest (avg)
13.23
Debt to EBITDA (avg)
0.88
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.92
Tax Ratio
100.00%
Dividend Payout Ratio
-273.70%
Pledged Shares
0.79%
Institutional Holding
31.72%
ROCE (avg)
19.80%
ROE (avg)
15.50%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
65
Industry P/E
54
Price to Book Value
10.44
EV to EBIT
45.92
EV to EBITDA
42.68
EV to Capital Employed
9.81
EV to Sales
9.04
PEG Ratio
16.59
Dividend Yield
1.61%
ROCE (Latest)
22.06%
ROE (Latest)
16.67%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
ROCE(HY)
Highest at 19.84%
NET SALES(Q)
Highest at Rs 3,768.43 cr
-10What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 8.47 times
OPERATING PROFIT TO NET SALES(Q)
Lowest at 20.06%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 295.10 cr
DEBT-EQUITY RATIO(HY)
Highest at 0.32 times
PBT LESS OI(Q)
At Rs 604.34 cr has Fallen at -5.6% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Godrej Consumer
Net Sales - Quarterly
Highest at Rs 3,768.43 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Godrej Consumer
Operating Profit Margin - Quarterly
Lowest at 20.06% and Fallen
each quarter in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio- Half Yearly
Lowest at 8.47 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 604.34 cr has Fallen at -5.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 640.32 CrMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 295.10 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio - Half Yearly
Highest at 0.32 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
