Godrej Industries Limited Fundamental Analysis
Godrej Industries Limited (GODREJIND.NS) shows moderate financial fundamentals with a PE ratio of 28.41, profit margin of 5.28%, and ROE of 9.35%. The company generates $234.9B in annual revenue with strong year-over-year growth of 19.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -164.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GODREJIND.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakGODREJIND.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateGODREJIND.NS shows balanced valuation metrics.
Growth Score
ExcellentGODREJIND.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateGODREJIND.NS shows balanced financial health with some risks.
Profitability Score
WeakGODREJIND.NS struggles to sustain strong margins.
Key Financial Metrics
Is GODREJIND.NS Expensive or Cheap?
P/E Ratio
GODREJIND.NS trades at 28.41 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, GODREJIND.NS's PEG of 1.08 indicates fair valuation.
Price to Book
The market values Godrej Industries Limited at 3.15 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -1.72 times EBITDA. This is generally considered low.
How Well Does GODREJIND.NS Make Money?
Net Profit Margin
For every $100 in sales, Godrej Industries Limited keeps $5.28 as profit after all expenses.
Operating Margin
Core operations generate 16.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.35 in profit for every $100 of shareholder equity.
ROA
Godrej Industries Limited generates $0.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Godrej Industries Limited generates limited operating cash flow of $-40.71B, signaling weaker underlying cash strength.
Free Cash Flow
Godrej Industries Limited generates weak or negative free cash flow of $-45.38B, restricting financial flexibility.
FCF Per Share
Each share generates $-134.73 in free cash annually.
FCF Yield
GODREJIND.NS converts -12.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.61
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.010
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How GODREJIND.NS Stacks Against Its Sector Peers
| Metric | GODREJIND.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.41 | 25.95 | Neutral |
| ROE | 9.35% | 1244.00% | Weak |
| Net Margin | 5.28% | -35124.00% (disorted) | Weak |
| Debt/Equity | 4.61 | 0.74 | Weak (High Leverage) |
| Current Ratio | 1.09 | 10.01 | Neutral |
| ROA | 0.98% | -1492364.00% (disorted) | Weak |
GODREJIND.NS outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Godrej Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
75.34%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
75.00%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-1397.59%
Industry Style: Cyclical, Value, Infrastructure
Declining