Godrej Consumer Products Ltd.
ISIN: INE102D01028 • Market Cap: ₹95,167 Cr
The 5-Pillar Quality Audit for Godrej Consumer Products Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (20.3%), Return on Capital Employed (23.9%), and equity compounding (14.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.33 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (4.4%) and 3Y PAT CAGR (—).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 49.73 vs PEG of 4.36 and Dividend Yield of 2.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 53.0%, backed by 31.9% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 23.9%)
Godrej Consumer Products Ltd. generates exceptional return on capital employed of 23.9%, reflecting pricing power and competitive moat.
Deep Institutional Sponsorship (31.9%)
Mutual funds, domestic DIIs, and foreign FIIs hold 31.9%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 4.4%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Fast Moving Consumer Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Fast Moving Consumer Goods space.
Quantitative Strategy Eligibility
Checking GODREJCP against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 68/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Fast Moving Consumer Goods Sector Peer Comparison
Compare GODREJCP directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Godrej Consumer Products Ltd. (GODREJCP)Current | 68/100 | ₹95,167 Cr | 49.73 | 23.9% | 0.33 | — |
| Hindustan Unilever Ltd. (HINDUNILVR) | 75/100 | ₹4.74 Lakh Cr | 31.67 | 22.6% | 0.00 | View |
| ITC Ltd. (ITC) | 81/100 | ₹3.34 Lakh Cr | 16.86 | 36.4% | 0.03 | View |
| Nestle India Ltd. (NESTLEIND) | 68/100 | ₹2.83 Lakh Cr | 74.37 | 57.2% | 0.00 | View |
| Varun Beverages Ltd. (VBL) | 75/100 | ₹1.46 Lakh Cr | 43.23 | 19.6% | 0.10 | View |
| Britannia Industries Ltd. (BRITANNIA) | 74/100 | ₹1.30 Lakh Cr | 50.04 | 62.3% | 0.27 | View |
Frequently Asked Questions: Godrej Consumer Products Ltd.
Q:What is the 5-Pillar Fundamental Score for Godrej Consumer Products Ltd. (GODREJCP)?
Godrej Consumer Products Ltd. has a RupeeTools Fundamental Score of 68/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (82/100), Financial Health (80/100), Growth (40/100), Valuation (48/100), and Ownership Quality (85/100).
Q:Is GODREJCP fundamentally strong for long-term investment?
GODREJCP currently holds a moderate quality rating of 68/100. While it operates in the Fast Moving Consumer Goods sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does GODREJCP pass the Coffee Can Investing filter?
No. GODREJCP does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does GODREJCP compare against other Fast Moving Consumer Goods peers?
Within India's Fast Moving Consumer Goods sector, GODREJCP trades at a P/E of 49.73 and generates an ROCE of 23.9%. Compare its 5-Pillar score of 68/100 against top sector peers like Hindustan Unilever Ltd. (75/100), ITC Ltd. (81/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.