Godrej Industries Ltd (GODREJIND) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Empire Inds.

3M India

DCM Shriram

Adani Enterp.

TTK Healthcare

Godrej Industrie

Sindhu Trade

Dhunseri Vent.

Aspinwall & Co

Balmer Lawrie

Swan Corp

Why is Godrej Industries Ltd ?

High Debt company with Weak Long Term Fundamental Strength

High Debt Company with a Debt to Equity ratio (avg) of 2.40 times
The company has been able to generate a Return on Equity (avg) of 8.85% signifying low profitability per unit of shareholders funds

Flat results in Jun 26

OPERATING CF(Y) Lowest at Rs -8,854.90 Cr
PBT LESS OI(Q) At Rs -180.01 cr has Fallen at -153.1% (vs previous 4Q average)
INTEREST(9M) At Rs 2,054.91 cr has Grown at 20.70%

Real-Time Research Report

Verdict Report

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 Diversified)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Godrej Industrie for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Godrej Industrie

6.02%

0.14

42.13%

Sensex

-3.21%

-0.24

13.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.79%

EBIT Growth (5y)

78.92%

EBIT to Interest (avg)

0.92

Debt to EBITDA (avg)

20.28

Net Debt to Equity (avg)

3.59

Sales to Capital Employed (avg)

0.50

Tax Ratio

27.95%

Dividend Payout Ratio

Pledged Shares

5.06%

Institutional Holding

8.04%

ROCE (avg)

3.76%

ROE (avg)

8.85%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.78

EV to EBIT

43.42

EV to EBITDA

34.07

EV to Capital Employed

1.61

EV to Sales

3.55

PEG Ratio

1.62

Dividend Yield

ROCE (Latest)

3.39%

ROE (Latest)

11.53%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

NET SALES(Latest six months)

At Rs 13,141.81 cr has Grown at 28.34%

PAT(Latest six months)

At Rs 730.16 cr has Grown at 37.17%

ROCE(HY)

Highest at 9.45%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 6,927.46 cr

-14What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -8,854.90 Cr

PBT LESS OI(Q)

At Rs -180.01 cr has Fallen at -153.1% (vs previous 4Q average

INTEREST(9M)

At Rs 2,054.91 cr has Grown at 20.70%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.37 times

PAT(Q)

At Rs 284.36 cr has Fallen at -11.7% (vs previous 4Q average

DEBT-EQUITY RATIO(HY)

Highest at 4.61 times

NON-OPERATING INCOME(Q)

is 124.58 % of Profit Before Tax (PBT

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Here's what is working for Godrej Industrie

Net Sales - Latest six months

At Rs 13,141.81 cr has Grown at 28.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 6,927.46 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Godrej Industrie

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -180.01 cr has Fallen at -153.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -71.13 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs -8,854.90 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 284.36 cr has Fallen at -11.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 322.08 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Inventory Turnover Ratio- Half Yearly

Lowest at 0.37 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest - Nine Monthly

At Rs 2,054.91 cr has Grown at 20.70%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 124.58 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debt-Equity Ratio - Half Yearly

Highest at 4.61 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio