Check Before You Invest : Godrej Consumer Products Ltd

Snapshot

Q.1 Which industry/sub-sector does Godrej Consumer Products Ltd belong to?

Godrej Consumer Products Ltd belongs to the FMCG sector, operating specifically within the Household & Personal Products segment.

Q.2 Is Godrej Consumer Products Ltd a good quality company?

Godrej Consumer Products Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Godrej Consumer Products Ltd undervalued or overvalued?

Godrej Consumer Products Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Godrej Consumer Products Ltd a good buy now?

Godrej Consumer Products Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Godrej Consumer Products Ltd?

Godrej Consumer Products Ltd revenue growth is 1.9% for FY-2025, which is below its 5-year CAGR of 7.7%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Godrej Consumer Products Ltd?

Godrej Consumer Products Ltd Return on capital employed is 19.17% for FY-2025, which is in line with its 5-year historical median of 18.69%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Godrej Consumer Products Ltd?

Godrej Consumer Products Ltd Return on Asset is 9.9%, which is below its 5-year historical median of 10.57%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Godrej Consumer Products Ltd?

Godrej Consumer Products Ltd Return on equity is 15.11% for FY-2025, which is in line with its 5-year historical median of 15.11%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Godrej Consumer Products Ltd?

Godrej Consumer Products Ltd Cash conversion cycle is 14 days, above its 5-year historical median of 6 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.85	0.88
ROE	15.11	15.11
ROCE	19.17	18.69
Cash Conversion Cycle	14 days	6 days

Q.6 Gross Profit margin of Godrej Consumer Products Ltd?

Godrej Consumer Products Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.7% for FY-2025, which is in line with its 5-year median of 18.7%, indicating stable margins.

Q.7 Operating Profit Margin of Godrej Consumer Products Ltd?

Godrej Consumer Products Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.99% for FY-2025, which is in line with its 5-year median of 20.99% indicating stable margins.

Q.8 Net Profit Margin of Godrej Consumer Products Ltd?

Godrej Consumer Products Ltd Net Profit Margin is 12.9% for FY-2025, is in line with with its 5-year median of 12.9%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	18.7	18.7
Operating Profit Margin	20.99	20.99
Net Profit Margin	12.9	12.9

Q.9 Debt to Equity ratio of Godrej Consumer Products Ltd?

Godrej Consumer Products Ltd Debt-to-Equity ratio is 0.32, which is above with the industry average of 0.19, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Godrej Consumer Products Ltd?

Godrej Consumer Products Ltd Debt to cash flow from operations is 1.51, which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Godrej Consumer Products Ltd?

Promoters hold 53.05% of the Godrej Consumer Products Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Godrej Consumer Products Ltd vs industry peers?

Godrej Consumer Products Ltd revenue CAGR is 7.70%, compared to the industry median CAGR of 8.69%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.9	8.7
Gross Profit Growth	1.8	8.1
Operating Profit Growth	1.9	7.7
Net Profit Growth	0	7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.85	0.91
ROE	15.11	17.77
ROCE	19.17	23.38
Cash Conversion Cycle (days)	14.21	-21

Valuation & price assessment

Q.1 Stock return of Godrej Consumer Products Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 9.3% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	9.3%	9.2%	5.2%	-13.6%

Q.3 Valuation ratios of Godrej Consumer Products Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	59.93	59.71	44.10
Price to Book	8.62	9.17	3.36
Price to Sales	7.23	8.16	4.62
EV to EBITDA	33.48	38.25	23.47

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