Godrej Consumer Products Limited Fundamental Analysis (BSE: GODREJCP.BO)
Godrej Consumer Products Limited Fundamental Analysis (BSE: GODREJCP.BO)
Godrej Consumer Products Limited (BSE: GODREJCP.BO) shows weak financial fundamentals with a PE ratio of 49.66, profit margin of 11.92%, and ROE of 15.42%. The company generates $160.5B in annual revenue with weak year-over-year growth of 1.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GODREJCP.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakGODREJCP.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakGODREJCP.BO trades at a premium to fair value.
Growth Score
WeakGODREJCP.BO faces weak or negative growth trends.
Financial Health Score
ModerateGODREJCP.BO shows balanced financial health with some risks.
Profitability Score
ModerateGODREJCP.BO maintains healthy but balanced margins.
Key Financial Metrics
Is GODREJCP.BO Expensive or Cheap?
P/E Ratio
GODREJCP.BO trades at 49.66 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GODREJCP.BO's PEG of 15.25 indicates potential overvaluation.
Price to Book
The market values Godrej Consumer Products Limited at 7.51 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.10 times EBITDA. This signals the market has high growth expectations.
How Well Does GODREJCP.BO Make Money?
Net Profit Margin
For every $100 in sales, Godrej Consumer Products Limited keeps $11.92 as profit after all expenses.
Operating Margin
Core operations generate 18.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.42 in profit for every $100 of shareholder equity.
ROA
Godrej Consumer Products Limited generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Godrej Consumer Products Limited generates limited operating cash flow of $6.56B, signaling weaker underlying cash strength.
Free Cash Flow
Godrej Consumer Products Limited generates weak or negative free cash flow of $3.67B, restricting financial flexibility.
FCF Per Share
Each share generates $3.58 in free cash annually.
FCF Yield
GODREJCP.BO converts 0.39% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
15.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How GODREJCP.BO Stacks Against Its Sector Peers
| Metric | GODREJCP.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.66 | 21.75 | Worse (Expensive) |
| ROE | 15.42% | 654.00% | Weak |
| Net Margin | 11.92% | -2337.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 2.27 | Weak Liquidity |
| ROA | 0.00% | 311.00% | Weak |
GODREJCP.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Godrej Consumer Products Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
44.86%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
23.70%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
62.17%
Industry Style: Defensive, Dividend, Low Volatility
High Growth