Why is Godrej Consumer Products Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 7.86% and Operating profit at 5.53% over the last 5 years
2
Flat results in Sep 25
- ROCE(HY) Lowest at 5.77%
3
With ROCE of 19.7, it has a Expensive valuation with a 8.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 3.86%, its profits have fallen by -7.2%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Godrej Consumer for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Godrej Consumer
3.86%
0.16
23.98%
Sensex
4.89%
0.41
11.85%
Quality key factors
Factor
Value
Sales Growth (5y)
7.86%
EBIT Growth (5y)
5.53%
EBIT to Interest (avg)
12.85
Debt to EBITDA (avg)
0.97
Net Debt to Equity (avg)
0.12
Sales to Capital Employed (avg)
0.90
Tax Ratio
28.82%
Dividend Payout Ratio
138.07%
Pledged Shares
0.79%
Institutional Holding
31.82%
ROCE (avg)
19.62%
ROE (avg)
14.97%
Valuation Key Factors 
Factor
Value
P/E Ratio
63
Industry P/E
53
Price to Book Value
9.70
EV to EBIT
44.49
EV to EBITDA
40.57
EV to Capital Employed
8.78
EV to Sales
8.04
PEG Ratio
NA
Dividend Yield
1.73%
ROCE (Latest)
19.73%
ROE (Latest)
15.48%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Bearish
No Trend
Technical Movement
9What is working for the Company
OPERATING CF(Y)
Highest at Rs 2,576.75 Cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 9.67 times
DPR(Y)
Highest at 138.07%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 10,803.40 cr
NET SALES(Q)
Highest at Rs 3,825.09 cr
-7What is not working for the Company
ROCE(HY)
Lowest at 5.77%
Loading Valuation Snapshot...
Here's what is working for Godrej Consumer
Operating Profit to Interest - Quarterly
Highest at 9.67 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Cash Flow - Annually
Highest at Rs 2,576.75 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
Highest at Rs 3,825.09 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 10,803.40 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend Payout Ratio (DPR) - Annually
Highest at 138.07%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)






