Godrej Consumer Products Ltd
Godrej Consumer Products Ltd
Fast Moving Consumer Goods F&OGodrej Consumer Products is engaged in a fast moving consumer goods Company, manufacturing and marketing Household and Personal Care products.[1]
Godrej Consumer Products commands a premium valuation at 56.1x PE with modest sales growth of 6% TTM and declining promoter holding. While 76% analyst buy ratings and improving ROE to 16% signal confidence, the stock's -13% one-year return and 8.25x price-to-book make the risk-reward unfavorable at current levels.
Key Fundamentals
MidcapPersonal CareConsumer GoodsTechnical Indicators
Key Insights
Weaknesses
4- Stock is trading at 8.25 times its book value
- The company has delivered a poor sales growth of 6.60% over past five years.
- Company has a low return on equity of 14.0% over last 3 years.
- Promoter holding has decreased over last 3 years: -10.2%
Growth Rate
AI Analysis — Bull vs Bear
Godrej Consumer Products commands a premium valuation at 56.1x PE with modest sales growth of 6% TTM and declining promoter holding. While 76% analyst buy ratings and improving ROE to 16% signal confidence, the stock's -13% one-year return and 8.25x price-to-book make the risk-reward unfavorable at current levels.
- Strong analyst consensus with 76.47% buy ratings (26 out of 34 analysts recommend buy)
- ROE has improved from 14% (3-year average) to 16% in the last year, indicating better capital efficiency
- Compounded profit growth of 8% TTM outpaces sales growth of 6% TTM, showing margin expansion
- Large-cap stability with market cap of Rs 1,04,115 crore providing institutional liquidity and index inclusion benefits
- Only 2.94% of analysts (1 out of 34) rate the stock as a sell, reflecting minimal bearish sentiment
- 10-year compounded sales CAGR of 6% and profit CAGR of 7% demonstrate consistent long-term business momentum
- 10-year ROE average of 18% shows the franchise has historically generated strong shareholder returns
- Stock trading at 8.25x book value is expensive for a company delivering only 14% 3-year average ROE
- Negative stock return of -13% over the past 1 year signals significant price correction and weak momentum
- Promoter holding has decreased by 10.2% over last 3 years, raising governance and confidence concerns
- PE ratio of 56.1x is significantly elevated for a company growing profits at only 6% CAGR over 3 years, implying a PEG ratio above 9x
- Compounded sales growth of just 6.6% over 5 years is below sector peers and indicates limited volume or pricing power
- 5-year stock CAGR of only 3% has massively underperformed broader market indices like Nifty 50
- Dividend yield of 0.49% offers negligible income support for investors waiting for capital appreciation
- 3-year stock CAGR of 0% means shareholders have earned zero returns over a meaningful holding period
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- No promoter share encumbrance FY26 Jun 17
Godrej Consumer Products promoters reported no new encumbrances on shares during FY26. Existing encumbrances from FY20 remain unchanged.
TL;DR: Limited recent news flow for Godrej Consumer Products. The confirmation of no new promoter share encumbrance is a routine corporate governance disclosure with no material impact on fundamentals. With only one neutral data point available, the near-term outlook depends on upcoming quarterly results and broader FMCG sector trends.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,200 | 3,449 | 3,602 | 3,660 | 3,386 | 3,332 | 3,666 | 3,768 | 3,514 | 3,662 | 3,825 | 3,998 | 3,900 |
| Expenses | 2,559 | 2,806 | 2,898 | 2,819 | 2,630 | 2,607 | 2,907 | 3,012 | 2,755 | 2,967 | 3,092 | 3,118 | 3,059 |
| Operating Profit | 641 | 643 | 704 | 841 | 756 | 724 | 760 | 756 | 759 | 695 | 733 | 880 | 841 |
| OPM % | 20% | 19% | 20% | 23% | 22% | 22% | 21% | 20% | 22% | 19% | 19% | 22% | 22% |
| Other Income | 36 | -13 | 53 | 63 | -2,312 | 57 | 80 | 77 | 42 | 65 | 33 | -35 | -24 |
| Interest | 53 | 74 | 77 | 67 | 78 | 88 | 83 | 90 | 90 | 86 | 76 | 79 | 90 |
| Depreciation | 69 | 76 | 61 | 54 | 50 | 49 | 50 | 62 | 73 | 59 | 66 | 66 | 76 |
| PBT | 556 | 480 | 619 | 783 | -1,684 | 644 | 707 | 682 | 639 | 614 | 625 | 700 | 651 |
| Tax % | 19% | 34% | 30% | 26% | 12% | 30% | 30% | 27% | 36% | 26% | 27% | 29% | 31% |
| Net Profit | 452 | 319 | 433 | 581 | -1,893 | 451 | 491 | 498 | 412 | 452 | 459 | 498 | 452 |
| EPS in Rs | 4.42 | 3.12 | 4.23 | 5.68 | -18.51 | 4.41 | 4.8 | 4.87 | 4.03 | 4.42 | 4.49 | 4.87 | 4.42 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 8,273 | 8,424 | 9,268 | 9,847 | 10,314 | 9,911 | 11,029 | 12,276 | 13,316 | 14,096 | 14,364 | 15,178 |
| Expenses | 6,894 | 6,766 | 7,361 | 7,763 | 8,183 | 7,757 | 8,629 | 9,867 | 10,873 | 11,139 | 11,349 | 12,022 |
| Operating Profit | 1,379 | 1,657 | 1,907 | 2,084 | 2,132 | 2,154 | 2,399 | 2,409 | 2,443 | 2,957 | 3,015 | 3,156 |
| OPM % | 17% | 20% | 21% | 21% | 21% | 22% | 22% | 20% | 18% | 21% | 21% | 21% |
| Other Income | 73 | -262 | 76 | 283 | 362 | 32 | 23 | 78 | 114 | -2,209 | 252 | 33 |
| Interest | 112 | 128 | 154 | 173 | 238 | 228 | 138 | 122 | 188 | 310 | 361 | 332 |
| Depreciation | 91 | 101 | 142 | 156 | 170 | 197 | 204 | 210 | 236 | 241 | 234 | 268 |
| PBT | 1,249 | 1,167 | 1,687 | 2,039 | 2,085 | 1,760 | 2,080 | 2,155 | 2,133 | 198 | 2,672 | 2,590 |
| Tax % | 22% | 29% | 22% | 20% | -12% | 15% | 17% | 17% | 20% | 383% | 31% | 28% |
| Net Profit | 976 | 831 | 1,308 | 1,634 | 2,342 | 1,497 | 1,721 | 1,783 | 1,702 | -561 | 1,852 | 1,861 |
| EPS in Rs | 8.88 | 8.1 | 12.76 | 15.99 | 22.91 | 14.64 | 16.83 | 17.44 | 16.65 | -5.48 | 18.11 | 18.19 |
| Div. Payout % | 21% | 24% | 39% | 42% | 44% | 55% | 0% | 0% | 0% | -274% | 138% | 110% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 34 | 34 | 34 | 68 | 102 | 102 | 102 | 102 | 102 | 102 | 102 | 102 |
| Reserves | 4,277 | 4,233 | 5,268 | 6,190 | 7,165 | 7,796 | 9,337 | 11,454 | 13,692 | 12,496 | 11,897 | 12,551 |
| Borrowings | 2,717 | 2,891 | 4,001 | 3,508 | 3,382 | 3,575 | 1,864 | 1,704 | 1,130 | 3,222 | 4,009 | 4,416 |
| Other Liabilities | 2,097 | 2,521 | 3,637 | 4,098 | 3,445 | 3,407 | 2,941 | 2,822 | 2,513 | 2,571 | 3,289 | 4,265 |
| Total Liabilities | 9,125 | 9,679 | 12,940 | 13,864 | 14,094 | 14,880 | 14,244 | 16,082 | 17,437 | 18,392 | 19,298 | 21,334 |
| Fixed Assets | 5,551 | 5,931 | 8,083 | 8,315 | 8,670 | 9,231 | 8,905 | 9,219 | 9,934 | 10,440 | 10,676 | 12,565 |
| CWIP | 225 | 44 | 97 | 84 | 52 | 57 | 57 | 116 | 45 | 83 | 464 | 220 |
| Investments | 186 | 190 | 934 | 997 | 516 | 672 | 679 | 1,015 | 3,029 | 3,504 | 3,645 | 2,767 |
| Other Assets | 3,164 | 3,514 | 3,826 | 4,468 | 4,855 | 4,920 | 4,602 | 5,731 | 4,429 | 4,365 | 4,513 | 5,782 |
| Total Assets | 9,125 | 9,679 | 12,940 | 13,864 | 14,094 | 14,880 | 14,244 | 16,082 | 17,437 | 18,392 | 19,298 | 21,334 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 1,027 | 847 | 1,860 | 1,723 | 1,729 | 1,588 | 2,030 | 1,451 | 2,151 | 2,070 | 2,577 | 2,488 |
| Investing | -1,236 | -622 | -2,243 | -336 | 274 | -552 | -292 | -844 | -1,754 | -3,435 | -343 | 355 |
| Financing | -12 | -202 | 665 | -1,384 | -2,039 | -1,295 | -1,816 | -380 | -794 | 1,406 | -2,181 | -2,388 |
| Net Cash Flow | -221 | 23 | 282 | 3 | -36 | -259 | -79 | 227 | -398 | 41 | 52 | 456 |
| Free Cash Flow | 814 | 639 | 1,680 | 1,412 | 1,521 | 1,436 | 1,866 | 1,453 | 2,158 | 2,101 | 2,018 | 1,946 |
| CFO/OP | 93 | 71 | 119 | 102 | 102 | 90 | 101 | 79 | 105 | 83 | 101 | 96 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 36 | 48 | 41 | 46 | 46 | 43 | 33 | 33 | 34 | 40 | 46 | 44 |
| Inventory Days | 102 | 123 | 125 | 135 | 125 | 146 | 127 | 128 | 84 | 73 | 79 | 82 |
| Days Payable | 103 | 140 | 152 | 201 | 204 | 212 | 149 | 130 | 99 | 97 | 120 | 114 |
| Cash Conversion Cycle | 34 | 32 | 13 | -20 | -33 | -24 | 11 | 31 | 19 | 16 | 6 | 12 |
| Working Capital Days | -25 | -6 | -22 | -31 | -20 | -42 | -33 | -7 | -2 | -60 | -81 | -40 |
| ROCE % | 20% | 23% | 22% | 21% | 20% | 19% | 20% | 19% | 17% | 19% | 19% | 19% |
Documents
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Company Information
Godrej Consumer Products is engaged in a fast moving consumer goods Company, manufacturing and marketing Household and Personal Care products.[1]