Godrej Consumer Products Analysis

dividend

Pros

• Dividends after 3 years are expected to be covered by earnings (1.6x coverage).

Cons

• Unable to calculate sustainability of dividends as Godrej Consumer Products has not reported any payouts.
• Unable to evaluate Godrej Consumer Products's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Godrej Consumer Products's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

Pros

• Godrej Consumer Products's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Godrej Consumer Products's earnings are expected to increase by more than the low risk growth rate in 3 years time.
• Godrej Consumer Products is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
• Performance (ROE) is expected to be above the current IN Personal Products industry average.
• An improvement in Godrej Consumer Products's performance (ROE) is expected over the next 3 years.

Cons

• Cash flow for Godrej Consumer Products is expected to increase but not above the 50% threshold in 2 years time.
• Godrej Consumer Products's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).
• Godrej Consumer Products's earnings growth is positive but not above the India market average.
• Godrej Consumer Products's earnings are expected to increase but not above the low risk growth rate next year.
• Godrej Consumer Products's net income is expected to increase but not above the 50% threshold in 2 years time.
• Godrej Consumer Products's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Godrej Consumer Products's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
• Godrej Consumer Products's revenue growth is positive but not above the India market average.

health

Pros

• Godrej Consumer Products is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Godrej Consumer Products is profitable, therefore cash runway is not a concern.
• Godrej Consumer Products is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (59.6%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 1.8x debt.
• Godrej Consumer Products's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (60.7% vs 33.7% today).
• Interest payments on debt are well covered by earnings (EBIT is 9x coverage).
• Godrej Consumer Products's level of debt (33.7%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The tenure for the Godrej Consumer Products board of directors is about average.
• Vivek's compensation has been consistent with company performance over the past year, both up more than 20%.
• The tenure for the Godrej Consumer Products management team is about average.

Cons

• Vivek's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Godrej Consumer Products has significant price volatility in the past 3 months.

past

Pros

• Godrej Consumer Products's year on year earnings growth rate has been positive over the past 5 years.
• Godrej Consumer Products has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Godrej Consumer Products's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Godrej Consumer Products used its assets less efficiently than the IN Personal Products industry average last year based on Return on Assets.
• Godrej Consumer Products has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Godrej Consumer Products's 1-year earnings growth is negative, it can't be compared to the IN Personal Products industry average.

value

Pros

• 532424 matched the Personal Products industry (-5.3%) over the past year.
• 532424 outperformed the Market in India which returned -14.5% over the past year.
• BSE:532424 is up 16.8% outperforming the Personal Products industry which returned 3.7% over the past month.
• BSE:532424 is up 16.8% outperforming the market in India which returned 8% over the past month.

Cons

• Godrej Consumer Products's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Godrej Consumer Products's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Godrej Consumer Products is overvalued based on assets compared to the IN Personal Products industry average.
• Godrej Consumer Products is poor value based on expected growth next year.
• Godrej Consumer Products is overvalued based on earnings compared to the IN Personal Products industry average.
• Godrej Consumer Products is overvalued based on earnings compared to the India market.