Godrej Industries Limited

Industrials — Conglomerates · NSE

₹1,044.10+₹13.60 (+1.32%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, falling profits.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Debt 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 Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Godrej Industries Limited, together with its subsidiaries, engages in the chemical, agriculture, real estate, vegetable oil, hospitality, and financial and investment businesses in India and internationally.

IndustryConglomerates

SectorIndustrials

Employees1,328

Annual revenue₹22,098 Cr

How does it make money?

Turns over ₹22,098 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 1,328 employees supports ₹16.64 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹16.64 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. 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?Little sign of one

Returns on capital of 12.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE15.2%

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 +32% 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+32%

Margin effect-4%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 2.22x is high — earnings must service borrowings before shareholders see anything
• Current ratio of 1.09 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
• Interest cover of 2.5x is adequate
✗ Debt has grown 37.9% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

56/ 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

29.9x

3Y Median

34.4x

40 monthly readings · mean 208.8x · range 18.6x–700.1x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 13% below its 3y median of 34.4x. 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 66% below the peer median of 88.8x.

vs. its own history

Fair

34.4x median over 40 months · -13%

vs. sector peers

Cheap

88.8x median of 3 peers · -66%

vs. generic bands

Fair

15x–35x

EV/EBITDA

23.7x

PEG

3.58

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 163% over 3 years, from ₹19,642 Cr to ₹51,564 Cr.
🔴High leverageFinancial
Debt/Equity of 2.22x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Inventory building faster than salesFinancial
Inventory up 326% against revenue up 32% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 66% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 14.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 14%✓ 16.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 14.6x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹9,883 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 7% a year✓ 9.8% CAGR
Latest reported year was -4.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

3 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 6 neutral · 4 weak

Market Cap

₹35,171 Cr

Mid Cap

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

P/E (Trailing)

29.9x

Fair

Fairly valued against the generic band

P/B Ratio

3.15x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹34.89

Profitable

Profitable on a per-share basis

ROE

11.1%

Moderate

Moderate capital efficiency

ROCE

12.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.22x

High

High leverage

Revenue Growth (YoY)

-4.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-18.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹9,883 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.1%

Average

Average margins

Net Margin

4.8%

Average

Average bottom-line conversion

Current Ratio

1.09

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1048.7 / 1132.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16,709 Cr	₹16,545 Cr	₹19,593 Cr	₹22,098 Cr	+9.8%
EBITDA	₹2,574 Cr	₹1,719 Cr	₹3,212 Cr	₹3,532 Cr	+11.1%
EBITDA Margin	15.4%	10.4%	16.4%	16.0%	—
PAT (Net Profit)	₹975 Cr	₹60 Cr	₹981 Cr	₹1,241 Cr	+8.4%
EPS	₹28.95	₹1.78	₹29.13	₹36.83	+8.4%
ROE	12.2%	0.7%	9.7%	11.1%	—
ROCE	11.4%	7.4%	10.0%	12.3%	—
Total Debt	₹19,642 Cr	₹28,996 Cr	₹38,088 Cr	₹51,564 Cr	+37.9%
Free Cash Flow	-₹5,237 Cr	-₹5,482 Cr	-₹5,932 Cr	-₹9,883 Cr	—

🟢 Revenue has grown at 9.8% a year over 3 years.

🟢 EBITDA has grown at 11.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 16.0% over 3 years.

🟢 PAT (Net Profit) has grown at 8.4% a year over 3 years.

🟢 EPS has grown at 8.4% a year over 3 years.

🔴 ROE has fallen from 12.2% to 11.1% over 3 years (-1.1 pts).

🟡 ROCE has held roughly flat at 12.3% over 3 years.

🔴 Total Debt has grown at 37.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.26 L Cr

Total Liabilities

₹1.03 L Cr

Cash & Equivalents

₹3,049 Cr

Operating Cash Flow

-₹8,855 Cr

Capex

-₹1,028 Cr

Shareholding (proxy)

Institutional Holding

6.4%

Insider Holding

87.2%

Corporate Actions

Next Earnings

13 Nov 2026

Ex-Dividend Date

02 Aug 2019

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

3 mixed3 general

Godrej Industries Share Price Rise Streak and Valuation

Univest, 16 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 Industries Share Price Extends Q1 Results Decline, Falls Over 4%

NDTV Profit, 17 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Godrej Industries zooms 10% in weak mkt; here's why the stock is in demand

Business Standard, 23 Apr

Godrej Industries Group Launches ₹2,000 Cr Private Credit AIF

HDFC Sky, 18 Aug

Godrej Industries Shares Fall 2.04%, Trading at Rs 1,198.00

Moneycontrol.com, 18 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

What Godrej Industries Limited's (NSE:GODREJIND) P/E Is Not Telling You

Simply Wall Street, 30 Jan

Watch Items

Revenue growth is negative (-4.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingBusiness Quality · Growth · Valuation · Risk

WeakFinancial Health · Profitability

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. 5 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑