Godrej consumers Company analysis

 

Industry profile  :  Personal Care and consumer staples is the sector which hardly get affect by any crisis. because you cant stop using tooth pest, Soap. life span of the products also high. shelf life is also small. Investors see this companies as secure place in crisis as maybe consumers may change habits about other things but its difficult about this things. This is perfect sector for investor seeking steady growth, dividend and low volatility. As 70% of Gross National Product is consumer spending and consumer staples sector is important part of it, we cant ignore it. plus this sector is hardly any cyclical. means even if your income is changed negatively, you cant stop using Soap. demand for soap, tobacco, tooth pest, Dish wash will not change drastically and that is like double edge sward for the sector. you can not see growth like Financials or automobile companies but you can hardly see them telling you that our revenue is also down.

Their profit per item is also small but when the volume is high that factor is cover. thats why for this sector Same Store Sales growth and volume growth is more important then Margin.

Company Profile  :  The company is fast moving consumer goods and personal care manufacture. As the industry is dominated by Foreign companies ( ITC Promoter is American Tobacco, Due to some events in past, their stake is not large.) The company is home grown. It is having large product portfolio, with having some big brands like Cinthol, Grade 1 soap, protekt, Soft & Gentle, Cuticura, Mitu and Pamela Grant. Its home care range of brands includes Good knight, HIT, aer, Ezee and Stella. Its hair care range of brands includes Ilicit, Touch of Silver, Roby and Renew. It is having presence large parts in india and offshore , including  Asia, Africa, Latin America and Europe. The Company offers a range of products in India, which include household insecticides, such as aerosols, liquid vaporizers, coils and mats; hair colors; soaps and air fresheners. Its protekt range of products consist of approximately three hand washes, a hand sanitizer and a personal mosquito repellent spray, including instant foam hand wash and alcohol-free sanitizer.

Shareholding Pattern  18 Promoter Entities hold 63.26% out of which 1 is Foreign. Majority of the promoter holding is with Personal. 0.59% held by Mutual Fund. 0.24% held by Financial Institutions. LIC Holds 1%+. 27.82% held by Foreign Investors. 6.73% held by General Public.

Financials and ratios  :  

 2010 - 112011 - 122012 - 132013 - 142014 - 152015 - 162016 - 17
Revenue2,506.043,043.143,631.674,119.844,487.314,854.384,811.70
Net profit434.96604.39510.94564.84654.45739.72848.03
NPM17.3519.86%14.06%13.71%14.58%15.23%17.62%
EPS13.6218.5815.0116.5919.2221.7224.89
Book Value47.3974.1781.1488.8599.38112.28129.12
Dividend Per share4.504.7555.255.55.7515
Dividend payout37.5225.9133.3031.6328.6126.4723.08
ROE28.3623.9418.5018.6719.3419.3419.28
ROCE27.9421.7116.8318.6119.2919.3318.22
ROA18.6916.8812.4912.5913.2914.7113.71
Asset turnover106.0983.2587.5990.9489.9995.7276.80
Debt to equity0.050.090.090000.03

Future prospectus  :  Future prospectus for such companies is always same. No matter what will happened, You need to buy toothbrush, Pest, Soap. so always there will be demand for such companies. Patanjali is definitely one Risk But still there are some customers who keeping faith on HUL and Godrej Consumer. Financials also looking good.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter