Godrej Industries Ltd.
ISIN: INE233A01035 • Market Cap: ₹40,998 Cr
The 5-Pillar Quality Audit for Godrej Industries Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (10.4%), Return on Capital Employed (12.1%), and equity compounding (11.1%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 4.57 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (11.8%) and 3Y PAT CAGR (206.9%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 34.87 vs PEG of 3.87 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 74.6%, backed by 8.0% institutional ownership.
Key Fundamental Strengths
High-Velocity Profit Compounding (3Y PAT CAGR: 206.9%)
Net earnings have compounded at 206.9% annualized, demonstrating operating leverage.
Consistent Market Standing (Large Cap)
Established player in the Diversified sector with an overall fundamental quality score of 58/100.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 4.57)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Diversified)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Diversified space.
Quantitative Strategy Eligibility
Checking GODREJIND 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 58/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Diversified Sector Peer Comparison
Compare GODREJIND directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Godrej Industries Ltd. (GODREJIND)Current | 58/100 | ₹40,998 Cr | 34.87 | 12.1% | 4.57 | — |
| 3M India Ltd. (3MINDIA) | 78/100 | ₹37,667 Cr | 65.20 | 49.8% | 0.00 | View |
| DCM Shriram Ltd. (DCMSHRIRAM) | 73/100 | ₹16,370 Cr | 11.43 | 11.5% | 0.36 | View |
Frequently Asked Questions: Godrej Industries Ltd.
Q:What is the 5-Pillar Fundamental Score for Godrej Industries Ltd. (GODREJIND)?
Godrej Industries Ltd. has a RupeeTools Fundamental Score of 58/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (50/100), Financial Health (40/100), Growth (85/100), Valuation (50/100), and Ownership Quality (72/100).
Q:Is GODREJIND fundamentally strong for long-term investment?
GODREJIND currently holds a moderate quality rating of 58/100. While it operates in the Diversified sector, investors should monitor its debt health before initiating long-term positions.
Q:Does GODREJIND pass the Coffee Can Investing filter?
No. GODREJIND does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does GODREJIND compare against other Diversified peers?
Within India's Diversified sector, GODREJIND trades at a P/E of 34.87 and generates an ROCE of 12.1%. Compare its 5-Pillar score of 58/100 against top sector peers like 3M India Ltd. (78/100), DCM Shriram Ltd. (73/100).
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.