Godrej Consumer Products Limited is an Indian FMCG company that is a part of the Godrej Group. Their product offerings comprise soaps, hair care products, toiletries and liquid detergents.
*Note: Prices that are specified below is based on INR
Godrej Historical Share Price (NSE)
The market cap of Godrej Consumer Products Limited, as of March 2018, is more than Rs.73,500 crore.
Company’s Wealth and Recent PerformanceGodrej Consumer Q1 FY19 Results
- The consumer durables company reported a rise in its consolidated adjusted net profit by 38.2% year-on-year to stand at Rs.311.2 crore.
- Also, its revenue rose by 13.7% year-on-year to stand at Rs.2,476 crore, in line with estimates.
- Gross margin inclined by 233bps year-on-year which led to a jump in EBITDA by 27.1% year-on-year to stand at Rs.444.2 crore, while the EBITDA margin increased by 189bps year-on-year to 17.9%.
- In the backdrop of the sale of certain brands within the group’s entities, a deferred tax of Rs.93.8 crore was recognised by the company, this led to a jump of 38.2% as Adjusted Profit After Tax (PAT) to stand at Rs.311 crore year-on-year. Reported PAT inclined by 79.9% to stand at Rs.405 crore.
- The company’s domestic business grew by 14% led by volume growth year-on-year, while comparable EBITDA incline was 44% for the said quarter.
- During the financial year 2017-18, the company reported its sales growth of 3% and an EBITDA growth of 10%.
- In the domestic market, the company reported its sales grew by 10% after adjusting GST.
- Its consolidated revenue from operations was up to stand at Rs.9,936.99 crore as against Rs.9,608.80 crore reported during the previous fiscal.
- The EBITDA also inclined to stand at Rs.1,858.24 crore as compared to Rs.1,686.23 crore reported during the previous financial year.
- The consumer durables company’s Profit After Tax (PAT) during the FY 2018 was up to stand at Rs.1,634.18 crore as against Rs.1,307.97 crore during the corresponding fiscal.
- During the said quarter, the company reported a rise in its consolidated Adj. net profit of 11.3% year-on-year to stand at Rs.423.4 crore.
- Its revenue grew by 5.8% year-on-year which stood at Rs.2,528.9 crore after considering net of excise duty for the base quarter.
- The EBITDA inclined by 10.2% to stand at Rs.596.9 crore, while its margin grew by 95bps year-on-year to 23.6% on account of a lower raw material cost.
- Its reported PAT rose by 59.2% year-on-year which stood at Rs.617.2 crore on account of Rs.193.8 crore exceptional income. The PAT grew by 11.3% year-on-year after adjusted for the exceptional income.
- The company’s domestic business grew by 7% which was led by volume growth of 6% year-on-year.
- Its international business posted a constant currency sales growth of 6% year-on-year largely led by Africa, Latin America and Europe, which inclined by 7%, 28% and 11% year-on-year, respectively.
- The constant currency sales (consolidated) in the third quarter of the fiscal year 2018 improved by 8% year-on-year. Of this, India business grew by 17% over the December quarter of the previous year whereas the business in international markets grew by a humble 5% over the same period.
- Considering EBITDA for the Q3 FY18, the consolidated figure improved by 16% while the same when considered for Indian operations, showed a 32% increase. Consequently, the net profit made by the company also improved in the December quarter. The consolidated net profit was reported to be Rs.430 crore - a 22% increase over the same quarter last year. An interim dividend of 100% has also been declared by the board.
- Being an emerging markets company, its international business reported a healthy sales growth. With the sole exceptions of Indonesia and Latin America, where it faced tough market conditions and macro challenges, its business in Africa, USA, Middle East, and Europe have delivered healthy sales.
Godrej Consumer Products Limited Stock Trends in 2018
- The opening price of Godrej Consumer Products stock on January 1, 2018, was Rs.1,007.95 on NSE and Rs.1,012 on BSE. For the first half of the month, the share price did not vary dramatically. However, by late January, the share price had crossed Rs.1,100 on the back of updates and positive market trends. The closing price on NSE at the end of the month was Rs.1,090.
- The opening price on NSE, on February 1 was Rs.1,060. An interim dividend of 100% was announced in February. Although, this did not motivate the investors to buy more stocks in the first half of the month witnessed massive turbulence in stock markets across the world. However, the stocks showed steady recovery in the second half. The closing price at the end of the month was Rs.1,070.
- The scrip grew by nearly 7 points to end at Rs.720.13 on the 1st of March and remained stable over the course of the month before closing at Rs.729.10 on the last day of the month.
- When the market opened for trading on the 1st of April, the stock closed for the day at Rs.743.57, up by more than 14 points. The scrip closed the month at Rs.744.70 with a steady progress during the month.
- The scrip gained further 2 points to begin May at Rs.746.10. The stock price grew significantly over the course of the month to end the month on a high at Rs.759.43.
- The scrip gained more than 15 points on the 1st of June to end the day at Rs.774.23 and by the end of the month, the stock price had risen to close at Rs.817.13.
- On the 2nd of July, the stock gained more than 6 points to end the day’s trading at Rs.823.40 and over the course of the month, the scrip rallied to close at Rs.877.93 on the last day of the month.
- When the market opened for trading on the 1st of August, the stock gained about 2 points to close at Rs.879.73 and over the course of the month, the scrip gained significantly to end the month at Rs.968.10.
Godrej Consumer Products Limited Stock Trends in 2016 and 2017
- The share price of Godrej Consumer Products at the start of 2016 was around Rs.660 on NSE and BSE. The price remained above Rs.600 for most of the month before slipping further in February. An interim dividend of 100% was announced in the month which did well to boost investors confidence. Through March, the stock price rose steadily and by the end of the month, it was close to Rs.700.
- The stock price in the months of April and May stayed above Rs.670. An interim dividend of 275% was announced in May and shortly after that, the price soared to cross Rs.700. Throughout the month of June, the share price remained steadily above Rs.700.
- In July, the share price of GPCL crossed Rs.800 although it failed to stabilise there. The share price went down in August, despite the announcement of an interim dividend of 100%. In September, the stocks bounced back and the price crossed Rs.800 once again. It remained this way for most of the month.
- Things did not change significantly up until November when demonetisation took place. The GPCL stocks suffered massively and they were once again back in the Rs.600 territory. However, they managed to recover by the end of the month. The closing price at the end of December 2016 was around Rs.740 on NSE and BSE.
- In January 2017, the opening price of the Godrej Consumer Products share was around Rs.760. The stock price inched cautiously towards Rs.800 and it managed to achieve this feat in mid-February, shortly after the announcement of an interim dividend of 100% by the company. The price rose steadily in March and at the end of the month, the price was around Rs.840.
- The rally continued in April as well. In May, the company released its Q4 results and announced an interim dividend of 1200%. These developments drove the stock price to hit a new 52-week high. The shares, in this period, were being traded at above Rs.950 albeit it was only for a short while. In June, the company announced bonus shares in 1:1 ratio.
- In late July, the share price crossed Rs.1,000 but it failed to sustain its newly found high. By early August, the share price had once again entered Rs.900 territory. The company once again announced an interim dividend of 100%. Through most of August and September, the shares changed hands at well above Rs.900.
- In early October, the board considered interim dividend again. This resulted in a share price spike, though it was only for a brief period. The company announced an interim dividend of 100% in November, following which the GPCL share price went beyond Rs.950 and continued to rise. The closing price at the end of December 2017 was roughly Rs.1,000 on NSE and BSE.
Should you invest in Godrej Consumer Products Limited?
- Godrej Consumer Products Limited is one of the leading names in the FMCG sector in India. Its market cap is second only to Hindustan Unilever Limited. Being a part of the Godrej Group, the company is among the most respected entities in the country. It offers products in three segments - home care, personal care, and hair care. They also have a strong presence in international markets, namely Indonesia, Africa, and Latin America. It is also fair to say that the company is a market leader in the mosquito repellent segment.
- The company is financially sound, which is evident from its previous reports. Its Earnings per Share has increased steadily over the years and the company has displayed steady growth in terms of sales, operating profit margin, and net profit as well. Furthermore, its debt-equity ratio is 0.03 as of March 2017, which indicates that company has very little debt.
- The company rewards its investors with regular dividends every year which is definitely a good sign. As it plans to expand further, especially in the international markets, we can expect its revenue to increase in the coming years. From a long-term point of view, investing in Godrej Consumer Products Limited is a feasible idea. However, it is advisable to perform your own research before investing.
Godrej Consumer Products Limited is one of the largest companies in FMCG sector, known for its comprehensive offerings in personal care, hair care, and home care segments. Its flagship products are Cinthol, Godrej No. 1, Ezee liquid detergent, Good Knight, Hit, et cetera. The company serves more than a billion people globally which has been mainly possible due to their sheer dedication to customer satisfaction, integrity, and respect for others. Godrej Consumer Products has several manufacturing units across the country that play a crucial part in boosting local economies. With a strong presence in the emerging markets of Asia, Latin America, and Africa, the company hopes to grow fast in the coming years, driven by exciting, ambitious aspirations.
History of the Company
The business of consumer products was the part of the erstwhile Godrej Soaps Limited up until 2001, when it was demerged into what is now known as Godrej Consumer Products Limited. The Godrej Group itself has a rich history, dating back to late 1890s, when Godrej was established by Ardeshir Godrej. Back then, the business was focused on making locks but over the years, it expanded into making safes. In the early 1900s, Godrej Soaps Limited was incorporated that started manufacturing soaps using vegetable oil which, needless to mention, turned out to be a big hit among the people. As years went by, the company expanded its portfolio and moved into hair care, personal care, and insecticides segments. They also made several acquisitions, domestic and international, to cement their position in the industry.
Adi Godrej - Chairman, Godrej Group
Adi Godrej is the Chairman of the Godrej Group and has held several important positions in the course of his long, impressive tenure. He has been instrumental in company’s growth across all verticals. He has been honoured with several awards over the years, the most recent of which are the Golden Peacock Lifetime Achievement Award for Ethical Leadership in 2016 and Business Leader of the Year in 2015. He has also been a board member of many trade and industrial associations. Mr. Godrej is an alumnus of Sloan School of Management at MIT, where he finished his Bachelor’s and Master’s degrees.
Vivek Gambhir - Managing Director & CEO, Godrej Consumer Products Limited
Mr. Gambhir has played an influential role in developing the ‘3 by 3’ strategy for GPCL - target the 3 emerging markets in Asia, Africa, and Latin America, across 3 product categories - home care, personal care, and hair care. He started his journey with the group in 2009 as Chief Strategy Officer. He is also an Independent Director on the Board of Philips India Limited, and also co-chairs the Confederation of Indian Industry National FMCG committee. Mr. Gambhir has a B.S and B.A from Lafayette College, in addition to an MBA from the Harvard Business School.
Godrej Consumer Products Limited Listings in NSE, BSE, and Indices
Godrej Consumer Products shares can be traded during working hours on the National Stock Exchange and Bombay Stock Exchange. The respective codes for the same are mentioned below:
BSE - 532424
NSE - GODREJCP
ISIN - INE102D01028
Sector - Personal Care
Coming to the stock market indices, the company is not listed on BSE SENSEX and NIFTY. However, it does comprise other important indices like NIFTY 100, NIFTY 200, NIFTY 500, S&P BSE SENSEX 50, S&P BSE LargeCap, et cetera.
Godrej Consumer Products Limited
4th Floor, Pirojshanagar
Eastern Express Highway
Mumbai - 400-079, India
Contact number - +91-22-25188010/20/30
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