Godrej Consumer (GODREJCP)

FairStock Score: 62/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Godrej Consumer as a large personal-care franchise with a durable brand moat, but I must separate business quality from investment price. At ₹934.30 and ₹95,607 Cr market cap, it has ₹4,099 Cr latest-quarter sales and ₹498 Cr net profit. The balance sheet is respectable: debt/equity 0.35, ROCE 19.21%, ROE 15.18%, FCF ₹2,234 Cr, Altman Z 5.79, Piotroski 8/9, and promoter holding 53.06%. It also pays a 2.14% dividend yield. Those are marks of a stalwart, not a fragile story. However, Graham would blink at the valuation. P/E is 49.99, P/B 7.56, while book value is only ₹123.61. The Graham Number is ₹216.78, giving a margin of safety of -461.64%. DCF intrinsic value is ₹467.12, less than half the market price. EV/EBITDA at 143.24 is eye-watering. Even with PEG 0.57, the long-term growth record is modest: 5-year revenue CAGR 7.70%. The latest sales growth of 76.41% and profit growth of 42.24% may be strong, but I cannot treat one period as a durable moat. FairStock score 62/100 (STEADY) fits my view. So: a good business, financially healthy, with a brand moat and strong cash generation. But at this price, the margin of safety is negative. I would not chase; I would watch execution, cash conversion, and valuation, and become interested only if price falls closer to intrinsic-value estimates. As Buffett says, price is what you pay, value is what you get.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer