Godrej Consumer Products Ltd.
Godrej Consumer Products Ltd.
Godrej Consumer Products Ltd (GCPL) was incorporated on November 29, 2000, and was promoted by Godrej & Boyce Manufacturing Company and went public in 2001. GCPL is a part of 119-year old Godrej Group and a leading Fast Moving Consumer Good (FCMG) Company that manufactures and markets Home care products, Personal Care Products, Haircare, and Air Care products such as toilet soap, detergents, hair color, household insecticide, etc. It is having manufacturing facilities at Malanpur in Madhya Pradesh, Baddi in Himachal Pradesh, Guwahati in Assam, and Namchi in Sikkim. The soap segment includes the Godrej brand and other brand toilet soaps and the personal care segment includes hair color, shaving cream and gel, talcum powder, deodorant, fairness cream, liquid detergent, and other toiletries. It also undertakes contract manufacturing of toilet soap for third parties.
Godrej Consumer Products Ltd (GCPL) is building its presence in three emerging markets of Asia, Africa, and Latin America across three categories of home care, personal wash, and hair care. It is ranked among the largest household insecticide and hair care in emerging markets. In household insecticides, it is the leader in India, the second-largest player in Indonesia and it is expanding its footprint in Africa. Godrej Consumer Products Ltd (GCPL) is the leader in serving the hair care needs of women of African descent, the number one player in hair color in India and Sub- Saharan Africa, and among the leading player in Latin America. It stands second in terms of market share soaps in India and the number one player in air fresheners and wet tissues in Indonesia.
|
CMP (as on 23/12/2016) |
1450 |
|
52 Week H/L |
1710/1120 |
|
Market Cap (Cr) |
49271.31 |
|
Equity Capital (Rs cr) |
34.05 |
|
Face Value (Rs) |
1 |
|
|
|
|
Shareholding Pattern (%) |
|
|
Promoters |
52.50 |
|
Non Institutions |
42.50 |
|
Grand Total |
100 |
Investment Rationales:
-
Positive global growth forecast
-
Successful acquisition strategy
-
GST – a game-changer
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Increase in shareholding in JV’s
-
Large market opportunity
|
Particulars |
FY12 |
FY13 |
FY14 |
FY15 |
FY16 |
|
Sales Turnover |
4986.61 |
6624.41 |
7822.94 |
8549.5 |
9274.03 |
|
EBITDA |
1114.32 |
1188.93 |
1231.43 |
1451.96 |
1688.3 |
|
Net Profit |
751.24 |
845.43 |
819.30 |
976.43 |
1158.89 |
|
EPS (Rs) |
22.06 |
24.83 |
24.06 |
28.68 |
34.03 |
|
PE (X) |
65.72 |
58.40 |
60.26 |
50.56 |
42.60 |
Outlook
Godrej Consumer Products Limited (GCPL) is a dominant player in personal care, health care, and home care with its high-quality products and wide market reach in both India and abroad. With the favorable demographic pattern, improvement in dynamics of consumption pattern, along available market opportunities, we expect Godrej Consumer Products Ltd (GCPL) to perform considerably well in the medium term and long term.
Company Overview
Indian product profile
|
Segment |
Brand |
|
Hare care |
Godrej Expert Crème |
|
BBLUNT |
|
|
NYU |
|
|
Personal care |
Cinthol |
|
Godrej No.1 |
|
|
Household insecticides |
Good knight |
|
Good knight Personal Repellents |
|
|
HIT |
|
|
Air fresheners and Health & Wellness |
Godrej aer |
|
Protekt |
Global brand profile
Revenue and EBITDA growth history
Market share overview
Godrej Consumer Products Ltd - Financials
Key ratios
|
|
FY12 |
FY13 |
FY14 |
FY15 |
FY16 |
|
Debt-Equity Ratio |
0.84 |
0.68 |
0.66 |
0.63 |
0.6 |
|
Long Term Debt-Equity Ratio |
0.62 |
0.53 |
0.47 |
0.45 |
0.48 |
|
Current Ratio |
1.1 |
1.24 |
1.1 |
1.08 |
1.26 |
|
Fixed Assets |
1.31 |
1.43 |
1.44 |
1.41 |
1.37 |
|
Inventory |
8.15 |
7.24 |
7.35 |
7.94 |
7.8 |
|
Debtors |
11.64 |
11.03 |
10.71 |
11.13 |
9.65 |
|
Total Asset Turnover Ratio |
1.17 |
1.23 |
1.26 |
1.26 |
1.21 |
|
Interest Cover Ratio |
11.63 |
11.03 |
9.59 |
12.1 |
14.52 |
|
EBIDTM (%) |
18.22 |
15.7 |
15.74 |
16.98 |
18.2 |
|
CPM (%) |
13.19 |
12.09 |
11.52 |
12.48 |
13.61 |
|
ROCE (%) |
19.74 |
17.82 |
18.87 |
20.57 |
21.03 |
|
RONW (%) |
25.71 |