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Godfrey Phillips India Ltd Stock Analysis

Small Cap
Evaluated by 1510 users | BSE: 500163 | NSE: GODFRYPHLP |
Cigarettes/Tobacco

Godfrey Phillips India Limited, flagship company of Modi Enterprises, is one of the largest FMCG companies in the country with many iconic cigarette brands like Four Square, Red & White, and Cavanders to its name. It also has an exclusive sourcing and...

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.
Godfrey Phillips India Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 18.23%17.84%13.26%15.6%12.06%10.03%6.85%7.01%11.17%17.32%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,6311,9122,0962,4782,5862,3252,3862,3122,4772,853
Y-o-Y Gr. Rt.-17.2%9.7%18.2%4.4%-10.1%2.6%-3.1%7.2%15.2%
Adjusted EPS (Rs.) 29.6734.6129.4837.3531.8829.621.2922.6939.3262.72
Y-o-Y Gr. Rt.-16.7%-14.8%26.7%-14.7%-7.2%-28.1%6.6%73.3%59.5%
Book Value per Share (Rs.) 151.53177.12200.35223.81248.61290.35306.16328.36364.71396.36
Adjusted Net Profit 154180153194166154111118204326
Net Op. Cash Flow (Rs. Cr.) 25120618429063.1326248514352377
Debt to Cash Flow from Ops 0.91.61.650.824.380.40.290.050.120.03
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.
Godfrey Phillips India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.4%2%6.1%15.2%
Adjusted EPS 8.7%14.5%43.4%59.5%
Book Value per Share 11.39.898.7
Share Price 2% -6.3% 0.6% -10.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 21.1821.0315.6217.6113.510.987.147.1511.3516.48
Operating Profit Margin (%) 16.6918.115.5116.0313.9314.0310.5611.2415.9820.77
Net Profit Margin (%) 9.469.417.317.846.416.624.645.18.2511.43
Debt to Equity 0.290.360.290.210.210.090.050.020.020.01
Working Capital Days 615966677380739910497
Cash Conversion Cycle 1182426384235483931
Entity Percentage Holding
Promoters 72.55%
Institutions 12.82%
Non-Institutions 14.59%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Godfrey Phillips India Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Godfrey Phillips India Ltd is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Godfrey Phillips India Ltd's performance infers:

Godfrey Phillips India Ltd earnings have grown by 14.5%, whereas share price has depreciated -6.3% 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 Godfrey Phillips India Ltd share prices over the last 10 years. Here is what we found out:

Godfrey Phillips India Ltd share price has depreciated 8.7% annually over the past ten years.

Godfrey Phillips India Limited, flagship company of Modi Enterprises, is one of the largest FMCG companies in the country with many iconic cigarette brands like Four Square, Red & White, and Cavanders to its name. It also has an exclusive sourcing and supply agreement with Philip Morris International to manufacture and distribute the renowned Marlboro brand in India.

It has expanded its product portfolio

Godfrey Phillips India Limited, flagship company of Modi Enterprises, is one of the largest FMCG companies in the country with many iconic cigarette brands like Four Square, Red & White, and Cavanders to its name. It also has an exclusive sourcing and supply agreement with Philip Morris International to manufacture and distribute the renowned Marlboro brand in India.

It has expanded its product portfolio beyond cigarettes and tobacco and entered India’s highly competitive chewing products, mouth freshener, confectionery segment and retail. Pan Vilas pan masala, Pan Vilas Silver Dewz - a silver-coated Elaichi (cardamom seed) and Funda Goli candies are all manufactured by the Company at attractive price points. Its premium retail outlets 24Seven is already a brand to contend with. Its brands are popular and it is a successful company because its people love what they do, are fully committed to its consumers and are a great team to work with.

The company’s Cigarette manufacturing units located in Rabale and Guldhar have top brass technology partners like Phillip Morris, G.D., Comas, SMC, Luwa, Forbes Marshall, Honeywell, Miebach, Nefab, Kaesar, and the Haulotte Group.

Business area of the company

It is one of the largest FMCG companies in India. It makes some of the most popular cigarette brands in the country like Four Square, Red and White, Cavanders, Tipper and North Pole. It also manufactures and distributes iconic brand Marlboro under a license agreement with Philip Morris. It has expanded business interests in chewing products, mouth fresheners, confectionary and retail.

Business Divisions

Cigarettes

  • Marlboro
  • Four Square
  • Red & White
  • Cavanders
  • Stellar
  • North Pole and Tipper

Chewing

  • Pan Vilas
  • Pan Vilas Silver Dewz
  • Raag

Retail

  • 24SEVEN

Confectionary

Awards and Recognition

2017-18

  • Rabale Cigarette Factory received Vasundhara Award for Environment Performance, Green Tech Platinum Award for Safety Performance and Excellence Award from “INSAAN” Society.
  • Ghaziabad Chewing Factory received Best Food Safety Award by ASSOCHAM and Gold Award in Best Practices in HR Domain by GMA.

2018-19

  • Rabale cigarette factory received Green Tech Safety “Gold Award” for outstanding achievement in safety management. Green Tech ‘Platinum Award for Safety Performance’ for exceptional achievement in environment management and Excellence Award from “INSAAN” society.
  • Ghaziabad chewing factory has been certified on Environment Management System ISO 14001:2015 by TUV SUD South Asia Private Limited in March 2019.

2019-20

  • Guldhar factory received Greentech Environment “Winner Award” for exceptional achievement & initiatives in environment management.
  • Rabale factory received Green tech Safety “Platinum Award” for outstanding achievement in safety management and environment management.
  • Rabale factory received excellence award from `INSAAN’ society on suggestions schemes.
  • Chewing Ghaziabad plant won Prestigious “GREENTECH Award 2019” in the field of “Environment safety 2019”.
  • Participated in the Asia Collaborative Study organized by TIOJ, Japan in which 69 laboratories from 54 countries took part. The results obtained by its laboratory were found to be at par with any national or international laboratory on the basis of the Z-score issued by TIOJ.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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