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Godrej Consumer Products Ltd. Stock Analysis

Large Cap
Evaluated by 5168 users | BSE: 532424 | NSE: GODREJCP |
Household & Personal Products

Godrej Consumer Products Ltd. (GCPL) is a leading emerging markets company. As part of the over 123-year young Godrej Group, it is fortunate to have a proud legacy built on the strong values of trust, integrity and respect for others. At the same time, it is...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Godrej Consumer Products Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 21.82%15.2%14.41%13.78%13.84%15.84%17.26%17.27%22.87%15.49%
Value Creation Index 1.510.710.200.150.150.320.440.440.890.28
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3,6944,8666,4167,6028,2768,4249,2689,84710,3149,911
Y-o-Y Gr. Rt.-31.8%31.9%18.5%8.9%1.8%10%6.3%4.7%-3.9%
Adjusted EPS (Rs.) 4.955.836.997.518.4210.2512.8614.9321.2115.15
Y-o-Y Gr. Rt.-17.8%19.9%7.4%12.1%21.7%25.5%16.1%42.1%-28.6%
Book Value per Share (Rs.) 17.7727.4532.4236.9242.1341.6951.8961.2470.9777.14
Adjusted Net Profit 4815957137678601,0471,3141,5262,1681,549
Net Op. Cash Flow (Rs. Cr.) 2061,0998201,1161,0278471,8601,7231,7291,588
Debt to Cash Flow from Ops 9.711.7132.132.653.412.152.041.962.22
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Godrej Consumer Products Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.6%3.7%2.3%-3.9%
Adjusted EPS 13.2%12.5%5.6%-28.6%
Book Value per Share 17.712.914.18.7
Share Price 20.4% 10.9% 2.8% -3.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 35.8726.2723.3221.6521.2724.4227.4626.432.0520.43
Operating Profit Margin (%) 17.8218.1516.0215.7316.719.6720.7421.4620.821.73
Net Profit Margin (%) 13.0112.7311.8910.8711.2312.4714.2115.4821.0115.62
Debt to Equity 1.160.670.740.630.630.680.750.560.470.45
Working Capital Days 86103122135132125108118124130
Cash Conversion Cycle 28262216151811-5-16-16
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 63.23%
Institutions 29.84%
Non-Institutions 6.93%
Pledged *0.000.000.000.000.000.000.000.660.660.66
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Godrej Consumer Products Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Godrej Consumer Products Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Godrej Consumer Products Ltd.'s performance infers:

Godrej Consumer Products Ltd. earnings have grown by 12.5%, whereas share price has appreciated 10.9% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Godrej Consumer Products Ltd. share prices over the last 10 years. Here is what we found out:

Godrej Consumer Products Ltd. share price has appreciated 17.8% annually over the past ten years.

Godrej Consumer Products Ltd. (GCPL) is a leading emerging markets company. As part of the over 123-year young Godrej Group, it is fortunate to have a proud legacy built on the strong values of trust, integrity and respect for others. At the same time, it is growing fast and has exciting, ambitious aspirations. GCPL is a leader among India’s Fast Moving Consumer Goods (FMCG) companies, with leading Household and Personal Care Products. The

Godrej Consumer Products Ltd. (GCPL) is a leading emerging markets company. As part of the over 123-year young Godrej Group, it is fortunate to have a proud legacy built on the strong values of trust, integrity and respect for others. At the same time, it is growing fast and has exciting, ambitious aspirations. GCPL is a leader among India’s Fast Moving Consumer Goods (FMCG) companies, with leading Household and Personal Care Products. The company’s brands, which include Good Knight, Cinthol, Godrej No. 1, Expert, Hit, Jet, Fairglow, Ezee, Protekt and Snuggy, among others, are household names across the country. The company is one of the largest marketers of toilet soaps in the country and is also leaders in hair colours and household insecticides. Registered Office of the company is Godrej One, 4th floor, Pirojshanagar Eastern Express Highway, Vikhroli East Mumbai - 400079.

Business area of company

Godrej Consumer Products Limited manufactures personal care, hair care, household care and fabric care products. The Company's products include toilet soaps, cosmetics, shaving creams, talcum powder, household cleaners and fabric detergents.

Products

Soaps and Talc- it has created brands like Cinthol, Fair Glow, Evita, and Vigil. Hair Care- Under this it has introduced various hair colour products such Colour Soft, Anoop, Renew, Godrej Expert and Kesh Kala. Household and Fabric Care- In this segment it has introduced products like Godrej Dish wash, Glossy and Ezee. Rapidol- GCPL acquired South African business Rapidol that has brands like Inecto and Soflene. It had acquired Brian Boyce and Vicki Dryden Wyatt Keyline Brands namely Cuticura, Aapri, Erasmic, Inecto and Nulon.

Awards

  • Thana unit received the ‘National Safety Council appreciation certificate’. 
  • Par excellence award for 7 teams and excellence award for 9 teams during NCQC 2019. 
  • 5S Award from QCFI and Union of Japanese Scientist Engineers (JUSE), received by the MMN unit.
  • The CONSO unit, which won the QCFI JUSE 5S Award last year, successfully completed the surveillance audit by the official team.
  • South cluster won the Godrej Safety Awards 2019 for the best celebration of National Road Safety Week in 2019.

Milestones

2013

  • GCPL launches Good knight Fast Card.
  • Cinthol fortifies its presence in personal care category with all new packaging and launch of shower gel.
  • GCPL to acquire 30% stake in Bhabani Blunt Hair Dressing.

2014

  • Godrej Launches Protekt Range of Personal Care Products.
  • Cinthol Confidence+ 'a complete health soap', is a new entrant in the 3000 crore  health soap segment that completely redefines the health soap category.

2015

  • Godrej Consumer Products has entered into an agreement with the Darling Group.
  • Godrej Consumer Products has completed the acquisition of 100% of the business of Frika Hair (Pty) Limited in South Africa.
  • Godrej Consumer Product has completed the acquisition of balance 40 percent stake in Cosmetica Nacional.

2016

  • Godrej Consumer Products has Acquisition of 100% equity stake in Strength of Nature LLC.
  • Godrej Consumer Products awarded the Porter Prize for Creating Shared Value 2016.
  • GCPL ranks among the best companies to work for in India by the Great Place to Work Institute.
  • GCPL acquires majority stake in Canon Chemicals in Kenya.
  • Godrej Consumer Products Limited ranks among the Best Large Workplaces in Asia by the Great Place to Work institute.

2017

  • Godrej partners UN for the global release of LGBTI anti-discrimination standards.

2019

  • Godrej Consumer Products has introduced ‘Godrej aer smart matic air fresheners.

2020

  • Godrej Consumer Products’ wholly-owned subsidiary -- Godrej East Africa Holdings has acquired balance 25 percent stake in Kenya-based Canon Chemicals for an undisclosed sum.
  • Godrej Consumer Products has tied up with Home Insect Control Association (HICA), an industry body to give impetus to the country's home Insecticides sector.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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