Personal Products
Godrej Consumer Products is a prominent Personal Care company, identifiable by its stock ticker GODREJCP. With a market capitalization of Rs. 106,935.2 Crores, it operates as a fast-moving consumer goods entity, engaging in the manufacture and marketing of a diverse range of personal care and home care products across various regions, including India, Africa, Indonesia, the Middle East, and the United States.
The company’s product portfolio includes:
These products are marketed under well-known brands such as Good knight, Godrej Expert, Darling, Saniter, Inecto, and many others, reflecting the company’s substantial reach in the consumer market.
Founded in 1897 and headquartered in Mumbai, India, Godrej Consumer Products reported a trailing revenue of Rs. 14,462 Crores over the last twelve months. The company values its shareholders by distributing dividends, currently offering a dividend yield of 2.39% per year, with a recent dividend payout of Rs. 25 per share.
Over the past three years, Godrej Consumer Products has demonstrated a robust revenue growth of 18.8%, illustrating its strong performance in the competitive consumer goods market.
Summary of Godrej Consumer Products's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
Management outlined a challenging Q3 FY25, particularly in India, due to macroeconomic slowdown, high palm oil inflation, and a weak Household Insecticides season. India's organic revenue grew 4% (volume flat), with EBITDA down 21%. International markets compensated, with Indonesia (9% revenue, 12% EBITDA growth), Africa (9% EBITDA growth), and Latin America (>25% volume growth) performing well.
Outlook:
Key Challenges:
Management remains optimistic on rural demand and innovation-led growth, targeting long-term margin improvement (India: 24-26% EBITDA).
Last updated: Jan 25
Question 1: What are the expectations for normalization in the Soaps business given destocking and price changes?
Answer: GCPL expects Soaps margins to normalize over 2-3 quarters as palm oil prices decline. Current EBITDA margins (~20%) remain healthy, with revenue growth near flat but market-beating. Sequential volume/value recovery is anticipated by Q4 FY25, with margin improvement to 24-26% targeted in H1 FY26.
Question 2: Why is Liquid Detergent growth outpacing Body Wash in India?
Answer: Liquid Detergents benefit from washing machine adoption and competitive pricing, making them a larger market share. Body Wash remains nascent but growing. GCPL aims to leverage future category expansion through strategic investments.
Question 3: How is rural growth performing compared to urban, and what is the impact of van operations?
Answer: Rural growth outpaces urban, driven by van distribution. Despite Q3's flat India volumes, rural contributions helped offset urban slowdowns. H1 FY25 saw ~7% volume growth, with vans critical to expanding rural reach.
Question 4: What is the consumer response to RNF in Household Insecticides?
Answer: RNF shows promise, with Incense Stick market share in high single-digits and ~50% handler share where distributed. Market share gains in Liquid Vaporizers and Coils are noted, though full impact will be clearer post-March 2025 season.
Question 5: How are urban consumption trends affecting premium segments?
Answer: Urban slowdowns, particularly in modern trade, are pressuring premium categories like Household Insecticides and Deodorants. Down-trading and weak discretionary spending are observed, but rural growth remains a buffer.
Question 6: What is the margin outlook for India and International businesses?
Answer: India margins (22.5% in Q3) aim for 24-26% post palm/PFAD normalization. Indonesia grew EBITDA 12%, Africa stabilized at ~15% margins, and Latin America saw >25% volume growth.
Question 7: Will pricing actions continue in Soaps?
Answer: Additional price hikes are likely to restore margins, as Q3's mid-single-digit pricing growth hasn't fully offset inflation. Q4 pricing growth is expected to exceed Q3.
Question 8: How is Fab performing amid competition?
Answer: Fab sustains strong growth and share gains in Laundry Liquids, supported by distribution expansion and innovation. Competition exists, but category growth and GCPL's strategy drive resilience.
Question 9: What is the status of Raymond Consumer Care's margins?
Answer: Post-acquisition EBITDA margins improved to mid-teens (from single digits), with further targets of ~20%. Deodorant GT challenges persist, but cost rationalization and ad spend are priorities.
Question 10: How is e-commerce affecting Nielsen data accuracy?
Answer: Urban slowdowns are partly attributed to quick commerce, which Nielsen under-reports. GCPL uses internal metrics but acknowledges urban GT/modern trade softness beyond e-commerce shifts.
Analysis of Godrej Consumer Products's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
Description | Share | Value |
---|---|---|
a) India | 59.4% | 2.3 kCr |
c) Africa (including Strength of Nature) | 20.3% | 772.4 Cr |
b) Indonesia | 13.3% | 507.9 Cr |
d) Others | 6.9% | 263.6 Cr |
Total | 3.8 kCr |
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Momentum: Stock price has a strong positive momentum. Stock is up 12% in last 30 days.
Size: It is among the top 200 market size companies of india.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Balance Sheet: Strong Balance Sheet.
No major cons observed.
Comprehensive comparison against sector averages
GODREJCP metrics compared to Personal
Category | GODREJCP | Personal |
---|---|---|
PE | -286.08 | 80.15 |
PS | 8.96 | 8.52 |
Growth | 2 % | 2.8 % |
GODREJCP vs Personal (2021 - 2025)
Understand Godrej Consumer Products ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
GODREJ SEEDS & GENETICS LIMITED | 27.72% |
GODREJ INDUSTRIES LIMITED | 23.74% |
Godrej Boyce Manufacturing Co Ltd | 7.33% |
NPS Trust - Through various Schemes | 1.66% |
Government Of Singapore | 1.22% |
NISABA GODREJ AND PIROJSHA GODREJ (TRUSTEES OF NG FAMILY TRUST) | 0.28% |
PIROJSHA GODREJ AND NISABA GODREJ (TRUSTEES OF PG FAMILY TRUST) | 0.28% |
TANYA DUBASH AND PIROJSHA GODREJ (TRUSTEES OF TAD FAMILY TRUST) | 0.28% |
Burjis Nadir Godrej | 0.19% |
Sohrab Nadir Godrej | 0.19% |
NADIR GODREJ, HORMAZD GODREJ AND RATI GODREJ (TRUSTEES OF HNG FAMILY TRUST) | 0.17% |
NADIR GODREJ, HORMAZD GODREJ AND RATI GODREJ (TRUSTEES OF BNG SUCCESSOR TRUST) | 0.06% |
Hormazd Nadir Godrej | 0.05% |
Azaar Arvind Dubash | 0.04% |
Nisaba Godrej | 0.04% |
Pirojsha Adi Godrej | 0.04% |
Nadir Barjorji Godrej | 0.02% |
ANAMUDI REAL ESTATES LLP | 0% |
GODREJ FUND MANAGEMENT AND INVESTMENT ADVISORS PRIVATE LIMITED | 0% |
NBG ENTERPRISE LLP | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Investor Care | |
---|---|
Dividend Yield | 1.97% |
Dividend/Share (TTM) | 25 |
Shares Dilution (1Y) | 0.02% |
Diluted EPS (TTM) | -4.43 |
Financial Health | |
---|---|
Current Ratio | 1.07 |
Debt/Equity | 0.31 |
Debt/Cashflow | 0.55 |
Valuation | |
---|---|
Market Cap | 1.3 LCr |
Price/Earnings (Trailing) | -286.08 |
Price/Sales (Trailing) | 8.96 |
EV/EBITDA | 144.23 |
Price/Free Cashflow | 68.7 |
MarketCap/EBT | 372.4 |
Fundamentals | |
---|---|
Revenue (TTM) | 14.46 kCr |
Rev. Growth (Yr) | 3.27% |
Rev. Growth (Qtr) | 2.64% |
Earnings (TTM) | -452.9 Cr |
Earnings Growth (Yr) | -14.24% |
Earnings Growth (Qtr) | 1.42% |
Profitability | |
---|---|
Operating Margin | 19.05% |
EBT Margin | 2.41% |
Return on Equity | -3.72% |
Return on Assets | -2.39% |
Free Cashflow Yield | 1.46% |
Updated Apr 23, 2025
GODREJCP has shown strong financial resilience through disciplined cost optimization and robust revenue growth across its product categories.
The company has effectively streamlined its supply chain and optimized its distribution channels, which has helped maintain its competitive edge in the consumer goods sector.
There is a promising upward drive anticipated for GODREJCP, supported by strong buying interest.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Detailed comparison of Godrej Consumer Products against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
HINDUNILVR | Hindustan UnileverDiversified FMCG | 5.48 LCr | 63.6 kCr | +3.84% | +4.54% | 50.94 | 8.62 | +1.53% | +4.22% |
ITC | ITCDiversified FMCG | 5.35 LCr | 84.7 kCr | +5.02% | -2.23% | 26.19 | 6.32 | +7.07% | -1.77% |
BRITANNIA | Britannia IndustriesPackaged Foods | 1.31 LCr | 17.8 kCr | +11.77% | +11.90% | 60.58 | 7.33 | +5.11% | +0.01% |
DABUR | Dabur IndiaPersonal Care | 85.89 kCr | 13.09 kCr | -4.77% | -4.31% | 48.55 | 6.56 | +2.70% | +0.34% |
MARICO | MaricoEdible Oil | 91.97 kCr | 10.55 kCr | +10.99% | +39.18% | 56.32 | 8.71 | +7.59% | +9.82% |
COLPAL | Colgate-Palmolive (India)Personal Care | 72.66 kCr | 6.21 kCr | +11.64% | -4.58% | 49.71 | 11.7 | +10.59% | +16.00% |