Godrej Consumer Products Limited (GODREJCP.NS) stock analysis

In our weekly check, Godrej Consumer Products Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3.

About Godrej Consumer Products Limited

Godrej Consumer Products Limited is a Consumer Defensive company (Household & Personal Products) based in India, listed on NSE as GODREJCP.NS.

What our checks show for GODREJCP.NS

Red flags

• Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
• The gross margin fell by 8.3 points, to 41.4%: costs are rising faster than prices.
• The dividend takes 10444% of profit: little cushion if profit falls.

Warning signs

• The net margin fell by 2.3 points over 5 years, to 12.3%: the company keeps less of each sale as profit.
• Revenue grew only 4.5% a year over the last 3 years.
• The price is 42.3 times earnings (P/E): the market already pays for a lot of future growth.
• The stock has fallen as much as 55% from a peak. Would you have held through that?

Strengths

• Net debt is only 1.1x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 1.27x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 19.1% a year over the next years.
• Analysts expect the net margin to improve by 2.6 points from today's 12.3%.
• Free cash flow is 11.8% of revenue: cash for dividends, buybacks or growth.
• Beta 0.33: the stock usually moves less than the market.

Similar companies

MARICO.NS · DABUR.BO · 4911.T · COLPAL.NS · 8113.T · PG

Questions

What grade does Godrej Consumer Products Limited (GODREJCP.NS) have?

In our weekly check, Godrej Consumer Products Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 4, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of GODREJCP.NS stock?

This week's biggest flags for Godrej Consumer Products Limited: Weak interest cover, Gross margin falling, Dividend stretched. In total 7 of 25 checks show a warning or a red flag.

What does Godrej Consumer Products Limited do?

Godrej Consumer Products Limited is a Consumer Defensive company (Household & Personal Products) based in India, listed on NSE as GODREJCP.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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