Godrej Consumer (GODREJCP)

FairStock Score: 56/100 — STEADY

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

Key Financials

Strengths

• Strong market leadership in personal care categories with established brands
• Consistent ROCE of 19.2% indicating efficient capital utilization
• Steady profit growth of 12% showing earnings consistency

Concerns

• Extremely high P/E ratio of 64.1 compared to industry historical norms
• Low dividend yield of 1.6% offers minimal income generation
• DhanIQ score of 2/10 indicates overall weak investment attractiveness

AI Analysis

Godrej Consumer is a Stalwart company — a household name in personal care products with brands like Good Knight, Hit, and Cinthol. Trading at Rs 1,200 with a market cap of Rs 1.2 lakh crore, the company demonstrates solid fundamentals with a ROCE of 19.2%, indicating efficient capital utilization. The data indicates consistent performance with 12% profit growth and 8.8% sales growth, reflecting steady demand for its consumer products. However, analysis suggests the current P/E ratio of 64.1 appears significantly elevated compared to historical norms for consumer staples, which typically trade at 25-35 times earnings. This premium valuation raises questions about future returns potential. The dividend yield of 1.6% provides modest income, though it's relatively low. The DhanIQ score of 2/10 signals weakness, primarily driven by the stretched valuation metrics. Investors may consider that while Godrej Consumer maintains market leadership in several categories and has demonstrated earnings consistency over decades, the current price appears to discount very optimistic future growth scenarios. The company's acceleration potential exists through rural market expansion and international operations, but the valuation leaves little room for disappointment.

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