NSEI:GODREJCP

Stock Analysis Report

Godrej Consumer Products

Executive Summary

Godrej Consumer Products Limited manufactures and sells personal and household care products in India, Indonesia, Africa, and internationally.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Godrej Consumer Products's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GODREJCP has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

GODREJCP

-0.8%

IN Personal Products

-1.4%

IN Market


1 Year Return

-6.8%

GODREJCP

-0.6%

IN Personal Products

6.4%

IN Market

Return vs Industry: GODREJCP underperformed the Indian Personal Products industry which returned 0% over the past year.

Return vs Market: GODREJCP underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

GODREJCPIndustryMarket
7 Day-1.7%-0.8%-1.4%
30 Day-17.9%-8.8%-3.3%
90 Day-12.5%-6.0%0.4%
1 Year-5.7%-6.8%0.5%-0.6%8.4%6.4%
3 Year16.5%12.1%34.9%29.4%20.9%14.1%
5 Year71.6%63.8%57.8%48.8%30.7%18.5%

Price Volatility Vs. Market

How volatile is Godrej Consumer Products's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Godrej Consumer Products undervalued compared to its fair value and its price relative to the market?

28.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GODREJCP (₹614.85) is trading above our estimate of fair value (₹304.52)

Significantly Below Fair Value: GODREJCP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GODREJCP is poor value based on its PE Ratio (28.5x) compared to the Personal Products industry average (24x).

PE vs Market: GODREJCP is poor value based on its PE Ratio (28.5x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: GODREJCP is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: GODREJCP is overvalued based on its PB Ratio (8.3x) compared to the IN Personal Products industry average (1.8x).


Next Steps

Future Growth

How is Godrej Consumer Products forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GODREJCP's forecast earnings growth (10% per year) is above the savings rate (6.5%).

Earnings vs Market: GODREJCP's earnings (10% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: GODREJCP's earnings are forecast to grow, but not significantly.

Revenue vs Market: GODREJCP's revenue (10.3% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: GODREJCP's revenue (10.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GODREJCP's Return on Equity is forecast to be high in 3 years time (22.8%)


Next Steps

Past Performance

How has Godrej Consumer Products performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GODREJCP has a high level of non-cash earnings.

Growing Profit Margin: GODREJCP's current net profit margins (21.6%) are higher than last year (19.5%).


Past Earnings Growth Analysis

Earnings Trend: GODREJCP's earnings have grown significantly by 20.8% per year over the past 5 years.

Accelerating Growth: GODREJCP's earnings growth over the past year (8.8%) is below its 5-year average (20.8% per year).

Earnings vs Industry: GODREJCP earnings growth over the past year (8.8%) exceeded the Personal Products industry 7%.


Return on Equity

High ROE: GODREJCP's Return on Equity (29%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Godrej Consumer Products's financial position?


Financial Position Analysis

Short Term Liabilities: GODREJCP's short term assets (₹46.4B) exceed its short term liabilities (₹45.5B).

Long Term Liabilities: GODREJCP's short term assets (₹46.4B) exceed its long term liabilities (₹23.2B).


Debt to Equity History and Analysis

Debt Level: GODREJCP's debt to equity ratio (33.6%) is considered satisfactory.

Reducing Debt: GODREJCP's debt to equity ratio has reduced from 46.1% to 33.6% over the past 5 years.

Debt Coverage: GODREJCP's debt is well covered by operating cash flow (72.4%).

Interest Coverage: GODREJCP's interest payments on its debt are well covered by EBIT (30.6x coverage).


Balance Sheet

Inventory Level: GODREJCP has a low level of unsold assets or inventory.

Debt Coverage by Assets: GODREJCP's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Godrej Consumer Products's current dividend yield, its reliability and sustainability?

1.52%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%0.6%markettop25%2.6%industryaverage1.3%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: GODREJCP's dividend (1.52%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: GODREJCP's dividend (1.52%) is low compared to the top 25% of dividend payers in the Indian market (2.59%).


Stability and Growth of Payments

Stable Dividend: GODREJCP's dividends per share have been stable in the past 10 years.

Growing Dividend: GODREJCP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.1%), GODREJCP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GODREJCP's dividends in 3 years are forecast to be covered by earnings (55.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Vivek Gambhir (51yo)

2.8yrs

Tenure

₹131,000,000

Compensation

Mr. Vivek Gambhir serves as Independent Director of Metropolis Healthcare Limited since September 7, 2018. He has been the Chief Executive Officer and Managing Director of Godrej Consumer Products Limited  ...


CEO Compensation Analysis

Compensation vs Market: Vivek's total compensation ($USD1.82M) is above average for companies of similar size in the Indian market ($USD1.14M).

Compensation vs Earnings: Vivek's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nisaba Godrej
Executive Chairperson2.8yrs₹52.00m0.59% 3.8b
Vivek Gambhir
MD, CEO2.8yrs₹131.00m0.021% 135.7m
Adi Godrej
Chairman Emeritus2.8yrs₹60.70m0.00015% 967.7k
V. Srinivasan
CFO, Compliance Officer & Company Secretary4.8yrsno data0.0019% 12.1m
Rahul Gama
Head of Human Resources4.5yrsno datano data
Sunder Mahadevan
Head of Global Research & Development4.5yrsno datano data
Naveen Gupta
Business Head of Africa2.5yrsno datano data
Omar Momin
Business Head of Darling & M&A0yrsno data0.0017% 10.9m
Darshan Gandhi
Head of Design2.7yrsno datano data
Akhil Chandra
Business Head of ASEAN0yrsno datano data

3.6yrs

Average Tenure

48yo

Average Age

Experienced Management: GODREJCP's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nisaba Godrej
Executive Chairperson2.8yrs₹52.00m0.59% 3.8b
Vivek Gambhir
MD, CEO2.8yrs₹131.00m0.021% 135.7m
Adi Godrej
Chairman Emeritus2.8yrs₹60.70m0.00015% 967.7k
Omkar Goswami
Independent Non-Executive Director11.7yrs₹3.30mno data
Nadir Godrej
Non Executive Director19.3yrs₹2.40m0.23% 1.5b
Aman Mehta
Independent Non Executive Director13.8yrs₹4.00mno data
Tanya Dubash
Non-Executive Director8.8yrs₹2.40m0.036% 233.5m
Jamshyd Godrej
Non Executive Director18.9yrs₹2.30m0.94% 6.1b
Narendra Ambwani
Independent Non-Executive Director8.8yrs₹4.10m0.00029% 1.9m
Ireena Vittal
Lead Independent Director1.1yrs₹3.80mno data

8.8yrs

Average Tenure

65.5yo

Average Age

Experienced Board: GODREJCP's board of directors are considered experienced (8.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GODREJCP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Godrej Consumer Products Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Godrej Consumer Products Limited
  • Ticker: GODREJCP
  • Exchange: NSEI
  • Founded: 1897
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: ₹645.152b
  • Shares outstanding: 1.02b
  • Website: https://www.godrejcp.com

Number of Employees


Location

  • Godrej Consumer Products Limited
  • Godrej One
  • 4th Floor
  • Mumbai
  • Maharashtra
  • 400079
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532424BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2001
GODREJCPNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2001

Biography

Godrej Consumer Products Limited manufactures and sells personal and household care products in India, Indonesia, Africa, and internationally. The company offers home care and personal care products, household insecticides, hair colours, liquid detergents, soaps, air fresheners, hair extensions, hair care products, personal wash products, wet wipes, depilatory products, and colour cosmetics, as well as skin care, fabric care, hygiene, air care, and dry hair products. It provides its products primarily under the Good knight, Godrej Expert, Cinthol, Godrej No. 1, Hit, Darling, B Blunt, protekt, Godrej aer, Frika, issue, Ilicit Color, Godrej nupur, mitu, Godrej Ezee, Inecto, Stella, Pamela Grant, Renew, 919, Roby, Villeneuve, and Godrej Professional brands. The company was founded in 1897 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 13:08
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.