Godrej Industries Ltd.
NSE: GODREJINDGodrej Industries Ltd.: A 30-second snapshot
Godrej Industries is a diversified holding company trading at Rs 1,130, carrying a debt-to-equity ratio of 222.4 and a trailing PE of 38.9. The stock is 7.9% above its 200-DMA and has recovered 11.75% over the past three months after a 3.62% decline over the prior year, with RSI at 61.98. FY26 results showed 5-year revenue growth of 51.6% and earnings growth of 142.6%, though profit margins remain thin at 4.78% and the business has recorded zero FCF-positive years in the observable history.
P/E
38.9
Forward P/E
—
ROE
+10.8%
Debt / Equity
222.41
Profit Margin
+4.8%
Div. Yield
—
5Y ROE > 15%
0/5
5Y FCF > 0
0/5
Quality
40/100
News
8 headlines · 5 positive · 0 negative
GODREJIND: FY26 delivered robust profit and revenue growth, led by record real estate and consumer gains - TradingView
TradingView
BTTV Exclusive | Why Godrej Capital will be a very good candidate for public listing, explains Pirojsha Godrej - Business Today
Business Today
Godrej Industries up 33% this month, best in 17 years on value unlocking prospects - CNBC TV18
CNBC TV18
India's Godrej Industries Plans To List Financial Services Arm Godrej Capital In The Next 5 Years - Press Conference - TradingView
TradingView
India's Godrej Consumer quarterly profit rises on strong domestic demand, volume growth - marketscreener.com
marketscreener.com
Recent context
- ·FY26 results described as delivering record real-estate and consumer gains at the consolidated group level (TradingView, 15 May 2026); the quarterly Godrej Consumer Products result cited strong domestic demand and volume growth.
- ·Pirojsha Godrej disclosed plans to list Godrej Capital within the next 5 years, with the financial-services subsidiary described as a strong IPO candidate (Business Today, 28 Apr 2026).
- ·The stock gained approximately 33% in April 2026, described as its best monthly performance in 17 years, attributed to value-unlocking prospects across the group's diversified subsidiaries (CNBC TV18, 23 Apr 2026).
Strengths
- +5-year earnings growth of 142.6% outpaces 5-year revenue growth of 51.6%, suggesting improving operating leverage at the consolidated group level.
- +Price is above both the 50-DMA (Rs 935.7) and 200-DMA (Rs 1,047.47), and RSI of 61.98 sits in neutral territory — not signalling near-term exhaustion by that measure.
- +News flow across 8 articles is 5 positive and 0 negative; recent coverage cites FY26 record profit in real estate and consumer segments, and Godrej Capital IPO discussions adding potential value-unlocking narrative.
- +Revenue base has grown 51.6% over five years, reflecting the group's exposure to multiple growth sectors including real estate, consumer goods, and financial services.
Weaknesses
- −Debt-to-equity of 222.4 is extreme for a non-financial conglomerate, and the debt trend is classified as rising — leverage is the single largest structural risk visible in the available data.
- −Zero FCF-positive years and zero ROE years above 15% across the observable history; consistency score of 23/100 indicates the group has not converted revenue growth into sustained high-quality returns on capital.
- −Net profit margin of 4.78% and quality score of 30/100 — lowest among the three peers ranked — point to thin per-unit earnings quality relative to the leverage being carried.
- −No analyst consensus data is available; the thin peer set (2 stocks with incomplete data) limits cross-sectional valuation context, reducing the ability to benchmark PE of 38.9 against sector norms.
Open questions
- ?Does the D/E of 222.4 primarily reflect inter-group holding-company financing structures, and how does net debt at the standalone entity compare to what consolidated accounts show?
- ?Is the 5-year earnings growth of 142.6% driven by operating improvement across subsidiaries, or by one-off asset sales and revaluations typical of diversified conglomerates?
- ?How does the potential Godrej Capital IPO affect the holding-company discount — and what precedent do other group IPOs (e.g. Godrej Properties, Godrej Consumer) offer on how the market re-rates GODREJIND post-listing?
- ?Given zero FCF-positive years in the observable history, what conditions would need to change at the subsidiary level for the consolidated entity to begin generating meaningful free cash flow?
Peer comparison: Conglomerate
Ranks 3 of 3 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| GODREJIND | Godrej Industries Ltd.You're viewing | 38.9 | +10.8% | 30 |
| Industry avg | across 2 peers | 56.6 | +11.6% | 46 |
| DCMSHRIRAM | DCM Shriram Ltd. | 20.4 | +11.6% | 54 |
| 3MINDIA | 3M India Ltd. | 92.7 | — | 37 |
Technical state
Current price
₹1,130.00
SMA 50
₹935.70
SMA 200
₹1,047.47
RSI (14)
62.0 (neutral)
From 52w high
-18.7%
1Y return
-3.6%
3M return
+11.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity ratio of 222.4 is extreme for a non-financial conglomerate; the rising debt trend and zero FCF-positive years across the available history indicate the balance sheet carries substantial leverage risk.
- highFCF-positive years recorded as 0 of available history; ROE years above 15% also 0; consistency score of 23/100. The business has not demonstrated sustained free cash generation or high-return capital deployment in the observable period.
- mediumNet profit margin of 4.78% is thin for a diversified holding company; quality score of 30/100 ranks last among the 3-stock peer set. Revenue has grown 51.6% over 5 years yet earnings per-unit quality remains structurally weak.
- lowSector peer set contains only 2 stocks (3MINDIA, DCMSHRIRAM); ROE and 1-year price-change data are null for both peers, making cross-sectional quality and valuation ranking unreliable. Analyst consensus data is also absent.
Cross-section contradictions
- Fundamentals show zero FCF-positive years and a consistency score of 23/100, yet the stock is trading 7.9% above the 200-DMA (Rs 1,047) and has gained 11.75% over 3 months — recent price momentum and structural capital-quality metrics are diverging.
- News flow is entirely positive (5 positive, 3 neutral, 0 negative across 8 articles), including FY26 record real-estate and consumer gains and a potential Godrej Capital IPO; yet the underlying holding-company financials show no history of ROE above 15% and zero free-cash-flow years, creating a gap between headline narrative and structural earnings quality.
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 18 May 2026 · rotates through NIFTY 500 every ~5 days