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 8.5 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 -7.62%, its profits have fallen by -7.2%
4
Below par performance in long term as well as near term
- Along with generating -7.62% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Quality key factors
Factor
Value
Sales Growth (5y)
7.76%
EBIT Growth (5y)
5.82%
EBIT to Interest (avg)
12.37
Debt to EBITDA (avg)
0.97
Net Debt to Equity (avg)
0.12
Sales to Capital Employed (avg)
0.90
Tax Ratio
29.34%
Dividend Payout Ratio
138.07%
Pledged Shares
0.79%
Institutional Holding
31.89%
ROCE (avg)
19.62%
ROE (avg)
14.97%
Valuation Key Factors 
Factor
Value
P/E Ratio
60
Industry P/E
52
Price to Book Value
9.64
EV to EBIT
42.32
EV to EBITDA
38.68
EV to Capital Employed
8.73
EV to Sales
7.81
PEG Ratio
NA
Dividend Yield
2.18%
ROCE (Latest)
19.73%
ROE (Latest)
15.48%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
10What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 11.15 times
NET SALES(Q)
Highest at Rs 4,099.12 cr
PBDIT(Q)
Highest at Rs 880.44 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 21.48%
PBT LESS OI(Q)
Highest at Rs 735.09 cr.
PAT(Q)
Highest at Rs 562.64 cr.
-7What is not working for the Company
DEBT-EQUITY RATIO(HY)
Highest at 0.34 times
Loading Valuation Snapshot...
Here's what is working for Godrej Consumer
Operating Profit to Interest - Quarterly
Highest at 11.15 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales - Quarterly
Highest at Rs 4,099.12 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 880.44 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 21.48%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 735.09 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 735.09 cr has Grown at 25.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 585.50 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 562.64 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Godrej Consumer
Debt-Equity Ratio - Half Yearly
Highest at 0.34 times and Grown
each half year 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