Godrej Consumer Products Limited

Consumer Defensive — Household & Personal Products · NSE

₹855.00−₹14.40 (−1.66%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by short-term liabilities exceed short-term assets.

In simple words: Strong business and financial position, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Godrej Consumer Products Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Godrej Consumer Products Limited, a fast-moving consumer goods company, manufactures and sells personal care and home care products in India, Africa, Indonesia, the Middle East, the United States, and internationally.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees3,337

Annual revenue₹15,100 Cr

How does it make money?

Turns over ₹15,100 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 3,337 employees supports ₹4.53 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.53 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 21.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE27.4%

What is the outlook?

33 analysts covering the stock expect revenue to grow about 9.9% and earnings to grow about 16.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+9.9%

Est. earnings growth+16.7%

Analysts33

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +14% while net margin moved -4% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+14%

Margin effect-4%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.6% — barely ahead of inflation
✗ Profit CAGR of only 3.0%

Quality vs. Valuation

Company Quality

63/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

44.9x

3Y Median

67.3x

40 monthly readings · mean 66.5x · range 46.7x–89.0x

Sector Median

38.6x

median of 4 sector peers

🟢Current valuation is approximately 33% below its 3y median of 67.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 16% above the peer median of 38.6x.

vs. its own history

Cheap

67.3x median over 40 months · -33%

vs. sector peers

Fair

38.6x median of 4 peers · +16%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

27.1x

PEG

14.87

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 19.4% to 22.2% over 3 years.
Return on capital is rising
ROCE has improved from 15.8% to 21.3%.
High return on capital employed
ROCE of 21.3% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 291% over 3 years, from ₹1,130 Cr to ₹4,416 Cr.
🟡Receivables growing faster than salesFinancial
Receivables up 47% against revenue up 14% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.91 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 19.4% to 22.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 33% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1,919 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 47% against revenue up 14%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 22.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.6% CAGR
Latest reported year was 15.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹1,919 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 21.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹87,506 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

44.9x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.92x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹19.03

Profitable

Profitable on a per-share basis

ROE

14.7%

Moderate

Moderate capital efficiency

ROCE

21.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.35x

Low

Conservative leverage

Revenue Growth (YoY)

15.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.34%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹1,919 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

31.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

17.2%

Good

Healthy core-business profitability

Net Margin

12.1%

Good

Strong bottom-line conversion

Current Ratio

0.91

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

864.3 / 898.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13,199 Cr	₹13,974 Cr	₹13,917 Cr	₹15,100 Cr	+4.6%
EBITDA	₹2,554 Cr	₹1,738 Cr	₹3,263 Cr	₹3,353 Cr	+9.5%
EBITDA Margin	19.4%	12.4%	23.4%	22.2%	—
PAT (Net Profit)	₹1,702 Cr	-₹561 Cr	₹1,852 Cr	₹1,861 Cr	+3.0%
EPS	₹16.65	₹-5.48	₹18.11	₹18.19	+3.0%
ROE	12.3%	-4.4%	15.4%	14.7%	—
ROCE	15.8%	3.5%	23.4%	21.3%	—
Total Debt	₹1,130 Cr	₹3,222 Cr	₹4,004 Cr	₹4,416 Cr	+57.5%
Free Cash Flow	₹1,923 Cr	₹1,763 Cr	₹1,977 Cr	₹1,919 Cr	-0.1%

🟢 Revenue has grown at 4.6% a year over 3 years.

🟢 EBITDA has grown at 9.5% a year over 3 years.

🟢 EBITDA Margin has risen from 19.4% to 22.2% over 3 years (+2.9 pts).

🟢 PAT (Net Profit) has grown at 3.0% a year over 3 years.

🟢 EPS has grown at 3.0% a year over 3 years.

🟢 ROE has risen from 12.3% to 14.7% over 3 years (+2.4 pts).

🟢 ROCE has risen from 15.8% to 21.3% over 3 years (+5.5 pts).

🔴 Total Debt has grown at 57.5% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (-0.1% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹21,334 Cr

Total Liabilities

₹8,681 Cr

Cash & Equivalents

₹977 Cr

Operating Cash Flow

₹2,488 Cr

Capex

-₹570 Cr

Shareholding (proxy)

Institutional Holding

23.2%

Insider Holding

64.2%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹20

Ex-Dividend Date

13 Aug 2026

Analyst Consensus

Recommendations

27 Buy · 6 Hold · 1 Sell

Target Price (Mean)

₹1,149.41

+34.4% vs CMP

Target Range

₹743 – ₹1,485

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive3 mixed2 general

Four Godrej Family Members Buy 1% Stake in Godrej Consumer for Rs 900 Cr

HDFC Sky, 25 Sept

Godrej Consumer Products Share Price rises 2.71% today

Univest, 06 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Godrej Consumer Q2 Update: Revenue seen growing high-teens, EBITDA in double digits

CNBC TV18, 05 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Godrej Consumer Products opens 4th manufacturing unit; expects to generate ₹3,800 crore turnover

Upstox, 27 Aug

Dividend Investors: Don't Be Too Quick To Buy Godrej Consumer Products Limited (NSE:GODREJCP) For Its Upcoming Dividend

Simply Wall Street, 10 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Godrej Consumer Products shares recover from 52-week low; analyst targets

BusinessLine, 06 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingValuation · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑