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Last Updated on: 20 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500164 | NSE: GODREJIND

Godrej Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 19, 2024, 7:07 pm

Market Cap 34,406 Cr.
Current Price 1,028
High / Low1,314/642
Stock P/E49.8
Book Value 252
Dividend Yield0.00 %
ROCE5.59 %
ROE0.65 %
Face Value 1.00
PEG Ratio12.70

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Godrej Industries Ltd

Competitors of Godrej Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Honasa Consumer Ltd 8,609 Cr. 264547/242114 35.50.00 %17.1 %% 10.0
Ambica Agarbathies Aroma & Industries Ltd 49.6 Cr. 30.243.2/23.233.1 60.60.00 %5.07 %3.65 % 10.0
Ador Multi Products Ltd 15.4 Cr. 33.045.9/30.1 23.20.00 %33.6 %26.7 % 10.0
Kaya Ltd 473 Cr. 360702/267 1060.00 %80.4 %% 10.0
Jyothy Labs Ltd 14,861 Cr. 405596/36739.6 51.40.86 %27.0 %21.2 % 1.00
Industry Average73,233.07 Cr2,187.4954.24103.770.69%36.77%29.68%4.94

All Competitor Stocks of Godrej Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,3562,6112,8903,2803,5154,4454,0254,0213,8434,8524,5063,9383,590
Expenses2,2642,6272,7483,1123,2723,9553,7083,8013,4694,2524,2643,6723,311
Operating Profit92-16142169243490317220373600242266279
OPM %4%-1%5%5%7%11%8%5%10%12%5%7%8%
Other Income292209292307225312261302413442532397380
Interest113124134147167175188223248284303333348
Depreciation62636467717272767879868996
Profit before tax2106237261230554318224460679386240216
Tax %19%1,584%22%23%20%24%19%2%17%17%24%32%24%
Net Profit171-92186201183423258219382562291164165
EPS in Rs3.92-0.474.124.274.296.756.064.649.348.915.292.593.16

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5,5436,8667,7999,1017,4548,3659,07610,84811,2919,33414,13016,74016,885
Expenses5,2766,4917,3438,6157,0617,7088,80510,23310,4799,02013,08315,23015,499
Operating Profit2673754554873926572716158123141,0471,5101,386
OPM %5%5%6%5%5%8%3%6%7%3%7%9%8%
Other Income1902202013172555209151,1429961,0151,1321,4181,751
Interest1111101191923434024135084914696239431,267
Depreciation56597093117148175163234242274305350
Profit before tax2904264675191876265971,0861,0836171,2821,6811,521
Tax %33%32%37%26%58%27%19%20%25%37%23%15%
Net Profit3524674695893234594848648123919921,4211,183
EPS in Rs11.669.7211.984.787.6310.0517.5316.469.9419.4228.9619.95
Dividend Payout %19%15%18%15%37%23%17%7%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)32.67%0.43%25.59%-45.16%42.11%5.45%78.51%-6.02%-51.85%153.71%43.25%
Change in YoY Net Profit Growth (%)0.00%-32.24%25.16%-70.75%87.27%-36.66%73.07%-84.53%-45.83%205.56%-110.46%

Godrej Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:9%
3 Years:21%
TTM:0%
Compounded Profit Growth
10 Years:-15%
5 Years:-36%
3 Years:-45%
TTM:-21%
Stock Price CAGR
10 Years:14%
5 Years:19%
3 Years:19%
1 Year:56%
Return on Equity
10 Years:7%
5 Years:7%
3 Years:7%
Last Year:1%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:40 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital34333434343434343434343434
Reserves3,0722,7013,1942,9683,1623,3014,3135,7557,5207,0937,9517,9688,458
Borrowings2,8294,1675,8857,2007,5546,9187,1167,27510,07114,50619,64228,99635,184
Other Liabilities3,4904,3074,3923,9314,2416,5006,5307,14311,15712,20216,11724,33127,872
Total Liabilities9,42411,20813,50414,13314,99116,75317,99320,20728,78133,83543,74461,32971,547
Fixed Assets1,1701,6501,8372,8283,2813,3023,8244,0494,5204,9715,2696,3656,809
CWIP62846677527454271202334444483942462262
Investments1,3622,3362,6913,0523,2034,1375,4736,5949,9529,6098,0098,6699,502
Other Assets6,2646,7578,2027,9798,4529,0428,4949,22913,86618,77229,52545,83254,973
Total Assets9,42411,20813,50414,13314,99116,75317,99320,20728,78133,83543,74461,32971,547

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +345-394-1,0501995691,6891,240392-672-1,756-4,409-4,284
Cash from Investing Activity +-767-901-459-185-234-1,016-1,360-1,874-5,147461,851-2,646
Cash from Financing Activity +4031,4201,4092-528-9591,0561,3495,7721,9163,5357,219
Net Cash Flow-19126-9916-193-286936-133-47206977288

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow267.00373.00451.00482.00385.00650.00265.00608.00805.00304.00-13.00-18.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days252525424040395060433328
Inventory Days2772903254373562991611715943359131,952
Days Payable13113110910312010188117327162318398
Cash Conversion Cycle1711842413762762381111043272176271,581
Working Capital Days1391321622172027673110257217247344
ROCE %6%6%5%4%8%7%11%10%5%8%8%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters67.18%67.18%67.18%67.17%67.17%67.17%67.17%67.16%67.16%67.16%67.16%67.69%
FIIs8.62%9.00%8.89%8.96%9.79%10.41%10.76%10.39%10.17%7.92%8.02%8.38%
DIIs3.77%3.27%3.19%3.00%2.82%2.13%1.84%2.34%2.90%4.86%5.01%4.76%
Public20.43%20.55%20.74%20.86%20.22%20.28%20.23%20.12%19.77%20.05%19.81%19.17%
No. of Shareholders89,89095,10098,4551,05,57094,91896,47692,34291,44194,14790,39995,33887,922

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Tata Large & Mid Cap Fund - Regular Plan1,541,5242.16138.72490,0002024-11-16214.6%
Tata Large & Mid Cap Fund - Regular Plan1,541,5242.16138.72490,0002024-11-16214.6%
Mahindra Manulife Small Cap Fund1,091,8962.8198.26490,0002024-11-16122.84%
DSP ELSS Tax Saver Fund1,061,5650.6995.53490,0002024-11-16116.65%
DSP Equity Opportunities Fund812,4300.6973.11490,0002024-11-1665.8%
Bandhan Small Cap Fund514,0291.0846.26490,0002024-11-164.9%
Mahindra Manulife Mid Cap Fund490,0002.1344.1490,0002024-11-160%
Tata Small Cap Fund406,3790.636.57490,0002024-11-16-17.07%
DSP Tiger Fund240,7070.6821.66490,0002024-11-16-50.88%
Samco ELSS Tax Saver Fund39,0004.063.51490,0002024-11-16-92.04%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)1.7828.9619.429.9416.41
Diluted EPS (Rs.)1.7828.9519.429.9416.41
Cash EPS (Rs.)30.2739.5029.158.3423.21
Book Value[Excl.RevalReserv]/Share (Rs.)449.04424.86388.62397.22277.78
Book Value[Incl.RevalReserv]/Share (Rs.)449.04424.86388.62397.22277.78
Revenue From Operations / Share (Rs.)493.04497.33419.79277.29335.53
PBDIT / Share (Rs.)81.4075.2358.7628.9641.09
PBIT / Share (Rs.)70.3966.1950.6421.7634.15
PBT / Share (Rs.)30.2338.1829.637.8319.20
Net Profit / Share (Rs.)19.2630.4621.021.1416.26
NP After MI And SOA / Share (Rs.)1.7828.9619.429.9416.41
PBDIT Margin (%)16.5115.1213.9910.4412.24
PBIT Margin (%)14.2713.3012.067.8410.17
PBT Margin (%)6.137.677.052.825.72
Net Profit Margin (%)3.906.125.000.414.84
NP After MI And SOA Margin (%)0.365.824.623.584.89
Return on Networth / Equity (%)0.7412.209.174.429.54
Return on Capital Employeed (%)8.7210.208.984.3111.16
Return On Assets (%)0.092.211.921.152.69
Long Term Debt / Equity (X)1.450.880.760.410.10
Total Debt / Equity (X)3.602.442.031.291.15
Asset Turnover Ratio (%)0.310.200.170.130.16
Current Ratio (X)1.151.181.351.461.04
Quick Ratio (X)0.430.540.840.940.72
Inventory Turnover Ratio (X)0.460.710.680.740.63
Dividend Payout Ratio (NP) (%)106.926.649.2412.8513.55
Dividend Payout Ratio (CP) (%)14.885.056.517.459.52
Earning Retention Ratio (%)-6.9293.3690.7687.1586.45
Cash Earning Retention Ratio (%)85.1294.9593.4992.5590.48
Interest Coverage Ratio (X)2.032.693.172.082.81
Interest Coverage Ratio (Post Tax) (X)1.482.092.271.081.78
Enterprise Value (Cr.)58691.6336408.7634165.4432983.6518772.03
EV / Net Operating Revenue (X)3.542.172.423.531.66
EV / EBITDA (X)21.4114.3817.2733.8413.58
MarketCap / Net Operating Revenue (X)1.580.811.101.960.84
Retention Ratios (%)-6.9293.3590.7587.1486.44
Price / BV (X)3.281.702.192.421.65
Price / Net Operating Revenue (X)1.580.811.101.960.84
EarningsYield0.000.070.040.010.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Godrej Industries Ltd as of November 20, 2024 is: 83.20

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 20, 2024, Godrej Industries Ltd is Overvalued by 91.91% compared to the current share price 1,028.00

Intrinsic Value of Godrej Industries Ltd as of November 20, 2024 is: 86.46

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 20, 2024, Godrej Industries Ltd is Overvalued by 91.59% compared to the current share price 1,028.00

Last 5 Year EPS CAGR: 3.92%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (9.77 cr) and profit (287.23 cr) over the years.
  1. The stock has a low average ROCE of 7.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 181.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 239.42, which may not be favorable.
  4. The company has higher borrowings (12,103.31) compared to reserves (5,188.92), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Godrej Industries Ltd:
    1. Net Profit Margin: 3.9%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 8.72% (Industry Average ROCE: 36.77%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 0.74% (Industry Average ROE: 29.68%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.48
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.43
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 49.8 (Industry average Stock P/E: 54.24)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 3.6
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Godrej Industries Ltd. is a Public Limited Listed company incorporated on 07/03/1988 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24241MH1988PLC097781 and registration number is 097781. Currently company belongs to the Industry of Personal Care. Company’s Total Operating Revenue is Rs. 3339.60 Cr. and Equity Capital is Rs. 33.66 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Personal CareGodrej One, Mumbai Maharashtra 400079investor@godrejinds.com
http://www.godrejindustries.com
Management
NamePosition Held
Mr. Adi GodrejChairman Emeritus
Mr. Nadir GodrejChairman & Managing Director
Mr. Vishal SharmaExecutive Director & CEO
Ms. Tanya DubashExecutive Director & Chief Brand Officer
Mr. Pirojsha GodrejDirector
Dr. Ganapati D YadavIndependent Director
Mr. Mathew EipeIndependent Director
Ms. Monaz NobleIndependent Director
Ms. Shweta BhatiaIndependent Director
Mr. Sandeep MurthyIndependent Director
Mr. Ajaykumar VaghaniIndependent Director

FAQ

What is the latest intrinsic value of Godrej Industries Ltd?

The latest intrinsic value of Godrej Industries Ltd as on 20 November 2024 is ₹83.20, which is 91.91% lower than the current market price of ₹1,028.00.

What is the Market Cap of Godrej Industries Ltd?

The Market Cap of Godrej Industries Ltd is 34,406 Cr..

What is the current Stock Price of Godrej Industries Ltd as on 20 November 2024?

The current stock price of Godrej Industries Ltd as on 20 November 2024 is ₹1,028.

What is the High / Low of Godrej Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Godrej Industries Ltd stocks is 1,314/642.

What is the Stock P/E of Godrej Industries Ltd?

The Stock P/E of Godrej Industries Ltd is 49.8.

What is the Book Value of Godrej Industries Ltd?

The Book Value of Godrej Industries Ltd is 252.

What is the Dividend Yield of Godrej Industries Ltd?

The Dividend Yield of Godrej Industries Ltd is 0.00 %.

What is the ROCE of Godrej Industries Ltd?

The ROCE of Godrej Industries Ltd is 5.59 %.

What is the ROE of Godrej Industries Ltd?

The ROE of Godrej Industries Ltd is 0.65 %.

What is the Face Value of Godrej Industries Ltd?

The Face Value of Godrej Industries Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Godrej Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE