Godrej Consumer Products Ltd.
NSE: GODREJCPGodrej Consumer Products Ltd.: A 30-second snapshot
Godrej Consumer Products (GODREJCP) is an FMCG company currently priced at Rs 1,009, trading below its 50-DMA (Rs 1,046) and 200-DMA (Rs 1,138) after a 19.1% decline over 12 months. The trailing PE of 55.4x compresses to a forward PE of 36.7x, though the company carries a debt-to-equity ratio of 34.9 — the highest leverage profile among its six measured FMCG peers. FCF was positive in 4 of the measured years and a 500% dividend was declared alongside Q4 FY26 results.
P/E
55.4
Forward P/E
36.7
ROE
+15.1%
Debt / Equity
34.90
Profit Margin
+12.3%
Div. Yield
+1.9%
5Y ROE > 15%
1/5
5Y FCF > 0
4/5
Quality
47/100
News
8 headlines · 3 positive · 2 negative
Godrej Consumer Products Q1 Results - Mint
Mint
GODREJCP: Revenue and profit rose, with robust segment results, major acquisition, and leadership changes - TradingView
TradingView
GODREJCP: Q4 delivered double-digit revenue and profit growth, with margin pressure expected short term - TradingView
TradingView
GCPL Q4 FY26 Results: At Rs 452 crore, PAT misses Street estimates; 500% dividend declared - Zee Business
Zee Business
Here's Why We're Wary Of Buying Godrej Consumer Products' (NSE:GODREJCP) For Its Upcoming Dividend - simplywall.st
simplywall.st
Recent context
- ·Q4 FY26 results reported double-digit revenue and profit growth alongside a 500% dividend declaration, but PAT of Rs 452 crore fell below analyst estimate ranges per Zee Business.
- ·A major acquisition and leadership changes were cited in coverage during May 2026, introducing execution and integration risk as a near-term variable.
- ·News sentiment across 8 items skewed neutral (3 positive, 3 neutral, 2 negative); the negative items included a simplywall.st piece flagging concerns around the upcoming dividend sustainability.
Strengths
- +FCF positive in 4 of the measured years, demonstrating recurring cash generation capacity across market cycles.
- +Forward PE of 36.7x represents a meaningful compression from the trailing PE of 55.4x, reflecting anticipated earnings expansion embedded in current consensus estimates.
- +Dividend yield of 1.94% supported by a 500% dividend declaration in Q4 FY26, indicating management willingness to return capital despite elevated leverage.
- +Revenue growth of 8.4% and earnings growth of 9.7% on a 5-year CAGR basis show a positive earnings trajectory, with Q4 FY26 reporting double-digit revenue growth.
Weaknesses
- −Debt-to-equity of 34.9 is substantially elevated relative to FMCG sector norms; the rising debt trend combined with ROE clearing 15% in only 1 of the measured years signals constrained return on capital and reduced financial flexibility.
- −Quality score of 38 ranks last (6th of 6) among measured FMCG peers, with NESTLEIND (61), HINDUNILVR (58), BRITANNIA (50), and TATACONSUM (45) all ranking materially higher on composite quality metrics.
- −Price has declined 19.1% over 12 months and 18.1% over 3 months, remaining below both the 50-DMA and 200-DMA for a sustained period; the 52-week drawdown stands at 21.9%.
- −Q4 FY26 PAT of Rs 452 crore missed Street estimates, and the trailing PE of 55.4x sits against a 5-year earnings CAGR of 9.7% — a valuation-to-growth gap that may reflect the market pricing in the elevated leverage and quality discount.
Open questions
- ?Does the debt-to-equity of 34.9 reflect a structural financing choice (e.g. acquisition leverage) or an operational working-capital pattern, and what is management guidance on the deleveraging timeline?
- ?The forward PE of 36.7x implies a meaningful re-rating from the trailing 55.4x — what earnings growth rate would need to materialize over the next 12 months for that compression to occur, and how does it compare to the 5-year CAGR of 9.7%?
- ?With GODREJCP ranking 6th of 6 peers on quality score, what specific metrics are driving the discount relative to HINDUNILVR (58) and NESTLEIND (61), and are those gaps narrowing or widening?
- ?The stock has declined 19.1% over 12 months while analyst consensus (1.51 across 36 analysts, 1-5 scale) sits at the constructive end of the range — what assumptions underpin that divergence between price action and coverage consensus?
Peer comparison: FMCG
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| GODREJCP | Godrej Consumer Products Ltd.You're viewing | 55.4 | +15.1% | 38 |
| Industry avg | across 5 peers | 52.4 | +37.5% | 51 |
| NESTLEIND | Nestle India Ltd. | 76.5 | +76.3% | 61 |
| HINDUNILVR | Hindustan Unilever Ltd. | 46.1 | +21.6% | 58 |
| BRITANNIA | Britannia Industries Ltd. | 49.1 | +53.3% | 50 |
| TATACONSUM | Tata Consumer Products Ltd. | 73.5 | +6.9% | 45 |
| ITC | ITC Ltd. | 16.9 | +29.3% | 41 |
Technical state
Current price
₹1,009.00
SMA 50
₹1,046.05
SMA 200
₹1,138.06
RSI (14)
40.9 (neutral)
From 52w high
-21.9%
1Y return
-19.1%
3M return
-18.1%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 34.9 is substantially above FMCG sector norms; peers HINDUNILVR, NESTLEIND, BRITANNIA, ITC, and TATACONSUM all operate with far lower leverage. Debt trend is rising, ROE of 15.1% cleared the 15% threshold in only 1 of the measured years, and the fundamental consistency score stands at 22 — indicating constrained capital efficiency and limited balance-sheet flexibility.
- mediumQuality score of 38 ranks 6th of 6 among measured FMCG peers (NESTLEIND 61, HINDUNILVR 58, BRITANNIA 50, TATACONSUM 45, ITC 41). Trailing PE of 55.4x sits against 5-year revenue CAGR of 8.4% and earnings CAGR of 9.7%, a wide valuation-to-growth gap relative to the growth rate delivered.
- mediumCurrent price of Rs 1,009 is below both the 50-DMA (Rs 1,046) and 200-DMA (Rs 1,138). The stock is down 19.1% over 12 months and 18.1% over 3 months, with a 52-week drawdown of 21.9%. Nearest support levels are Rs 1,001.5 and Rs 962.3; resistance begins at Rs 1,046.9.
- lowQ4 FY26 PAT of Rs 452 crore reported below Street estimates per Zee Business. News sample of 8 items is thin, limiting the reliability of the neutral aggregate sentiment signal.
Cross-section contradictions
- Q4 FY26 headline coverage cites double-digit revenue growth and a 500% dividend declaration, yet the stock is down 19.1% over 12 months — reported earnings progress has not translated into price appreciation over that period.
- Mean analyst rating of 1.51 across 36 analysts (1-5 scale, lower = more constructive) sits at the constructive end of the scale, yet the stock has sustained a 21.9% drawdown from its 52-week high with price below both the 50-DMA and 200-DMA.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days