Godrej Consumer Products Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Godrej Consumer Products Ltd trades at ₹1,072, in a downtrend and 18 weeks into that stage. That is −3.1% against its own 200-day average. It sits at 29% of a 52-week range of ₹995 to ₹1,257. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.

Today the stock is in a downtrend — week 18 of stage 4, confirmed. At ₹1,072 it trades −3.1% versus its 200-day average and sits at 29% of its 52-week range (₹995–₹1,257).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +168% while the NIFTY 500 moved +280% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 63rd percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Godrej Consumer Products Ltd trades at 54.7× P/E, mid-range by its own standards (63rd percentile). Its long-run median P/E is 51.1×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 54.7× is mid-range by its own standards (63rd percentile), against a long-run median of 51.1× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +0.4% against a −14.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +2.4%/yr price move, ~+2.5%/yr came from earnings growth and ~−0.1 pp from the multiple (roughly flat); over 10y, of the +7.2%/yr price move, ~+5.3%/yr came from earnings growth and ~+1.9 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Godrej Consumer Products Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 7 quarters ago at −125.5% and has held its recovery at +0.5%, ROCE holding at 22.2%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

41.2/100 — rank 9 of 12 in FMCG - Personal Care · 90% evidence confidence

Godrej Consumer Products Ltd scores 41.2 out of 100 against the 12 companies it is compared with in FMCG - Personal Care, ranking 9. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 15.2 + 10.8 + 4.5 + 10.7 = 41.2. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Godrej Consumer Products Ltd reported ₹3,900 Cr of revenue in the Mar 26 quarter, +11.0% year on year. That is the 7th straight quarter of year-on-year growth. Over 10 years it has compounded at 6.1% a year. The last full year, FY26, came in at ₹15,178 Cr. The last four reported quarters add to ₹15,385 Cr.

Godrej Consumer Products Ltd reported ₹3,900 Cr of revenue in the Mar 26 quarter, +11.0% year on year. That is the 7th straight quarter of year-on-year growth. Over 10 years it has compounded at 6.1% a year. The last full year, FY26, came in at ₹15,178 Cr. The last four reported quarters add to ₹15,385 Cr.

FY26 revenue came in at ₹15,178 Cr (+8.4% on the year), capping 10 years at 6.1% compound. The latest quarter (Mar 26) printed ₹3,900 Cr, +11.0% year on year — the 7th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +7.8% growth against the decade's 6.1% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +7.7% over the last 4 quarters against +4.5%/yr over the last 8 — accelerating.

→ Revenue grew — did margins hold as it scaled? Next: 22.0% this quarter (+0.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Godrej Consumer Products Ltd's operating margin is 22.0% in the Mar 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 15.0% to 22.0%. The current quarter sits inside that band.

Godrej Consumer Products Ltd's operating margin is 22.0% in the Mar 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 15.0% to 22.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 22.0%, +0.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 15.0%–22.0%.

Why the margin moved: operating margin went +0.0 pp year on year while gross margin went +0.7 pp — the gain came mostly from the gross line: input costs and pricing.

→ Margins held — did that reach the bottom line? Next: profit +9.7% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Godrej Consumer Products Ltd earned ₹452 Cr of net profit in the Mar 26 quarter, +9.7% year on year. Full-year FY26 profit was ₹1,861 Cr. The 10-year compound rate is 8.4%. That is 11.6% of the quarter's revenue. The same quarter a year earlier earned ₹412 Cr. 1 of the last 12 reported quarters were loss-making.

Godrej Consumer Products Ltd earned ₹452 Cr of net profit in the Mar 26 quarter, +9.7% year on year. Full-year FY26 profit was ₹1,861 Cr. The 10-year compound rate is 8.4%. That is 11.6% of the quarter's revenue. The same quarter a year earlier earned ₹412 Cr. 1 of the last 12 reported quarters were loss-making.

Mar 26 profit was ₹452 Cr, +9.7% year on year. On the full year, FY26 printed ₹1,861 Cr (+0.5%), and the 10-year compound rate is 8.4%.

Why profit moved: revenue contributed +11.0% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +0.8% vs revenue +7.8%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 133% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 133% of Godrej Consumer Products Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹2,488 Cr of operating cash against ₹1,861 Cr of profit. After ₹1,913 Cr of capital spending, ₹575 Cr was left as free cash.

FY26: operating cash of ₹2,488 Cr against reported profit of ₹1,861 Cr, leaving free cash of ₹575 Cr after ₹1,913 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 133% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 133%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: the bigger cash user is investment — capital spending ran 4.8× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹3,549 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Godrej Consumer Products Ltd's cash conversion cycle runs 12 days in FY26, up from 11 days in FY21. Capital spending ran ₹3,549 Cr over the last 3 years. At FY26 sales of ₹15,178 Cr each day of that cycle holds about ₹41.6 Cr, so roughly ₹499 Cr sits inside the business at any moment.

FY26: debtors at 44 days, inventory at 82 days — roughly 2.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 12 days, looser than FY21's 11.

The full loop: cash goes out to suppliers and production on day 0; stock waits 82 days to sell; customers pay about 44 days after that; and suppliers themselves are paid at 114 days — netting out to the 12-day cycle.

In money terms: at FY26 sales of ₹15,178 Cr, each day of the cycle holds about ₹41.6 Cr — so the 12-day loop keeps roughly ₹499 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹3,549 Cr over the last 3 fiscal years against ₹743 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹229 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 19% and the ROIC − WACC spread is +3.0 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Godrej Consumer Products Ltd earns a ROCE of 19% in FY26. That is up from a trough of 17% in FY23. Return on invested capital clears the cost of that capital by +3.0 percentage points, so growth here adds value rather than only size. The wiring behind it is 12.3% net margin on 0.72× asset turns.

FY26 ROCE is 19%, recovered from a FY23 trough of 17% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 12.3% net margin × 0.72× asset turns × 1.66× balance-sheet leverage ≈ 14.7% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 15.0% − 12.0% = a +3.0 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.35.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Godrej Consumer Products Ltd carries total debt of ₹4,416 Cr against shareholder equity of ₹12,653 Cr as of Mar 26, a debt-to-equity of 0.35. On the annual view that ratio went from 0.15 in FY22 to 0.35 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹4,416 Cr against shareholder equity of ₹12,653 Cr — a debt-to-equity of 0.35. On the annual view, debt-to-equity went from 0.15 (FY22) to 0.35 (FY26). Read the returns on this page with that leverage in mind.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 10.3 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 10.3 points of Godrej Consumer Products Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 19.6% of the company. Foreign institutions moved −10.1 points over the same window, to 12.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +10.3 points over 8 quarters to 19.6%; Foreign institutions: −10.1 points over 8 quarters to 12.3%; Promoters: −9.9 points over 8 quarters to 53.1%.

Why the register moved: rotation — foreign institutions −10.1 points against domestic institutions +10.3 points over 8 quarters, with promoters −9.9 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Godrej Consumer Products Ltd: the Z-score reads 10.16. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 10.16 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 10.16.

Frequently asked questions