Godrej Consumer Products Ltd (GCPL) posted a noteworthy turnaround in Q4 FY24, swinging from a massive loss in the year-ago period to a net profit of ₹412 crore. This sharp recovery came on the back of consistent revenue growth and stable operating performance, marking a return to profitability after one-time impairment losses dragged the company into the red last year.
Revenue for the quarter came in at ₹3,598 crore, registering a 6.35 percent year-on-year growth compared to ₹3,385.6 crore in Q4 FY23. EBITDA stood marginally higher at ₹759.4 crore, up 0.5 percent from ₹755.7 crore in the corresponding quarter. However, margins compressed slightly, with the EBITDA margin at 21.1 percent versus 22.3 percent a year earlier, reflecting inflationary pressure on input costs.
The company’s current market price is ₹1,240, with a price-to-earnings ratio of 66.9, well above the industry average, suggesting a premium valuation backed by strong brand equity and future growth potential. Godrej Consumer maintains solid return ratios, with return on equity at 15.4 percent and return on capital employed at 19.4 percent. The board also declared an interim dividend, reinforcing its capital return strategy.
Godrej Consumer remains fundamentally strong, with a three-year free cash flow of ₹6,276 crore and minimal debt (debt-to-equity ratio of 0.33). The stock trades at a price-to-book value of 10.5, while its return on assets stands at 9.96 percent. Although profit growth has been modest over the long term—just 2 percent CAGR over three years—the trailing twelve-month profit has surged 126 percent, reflecting a low base and strategic turnaround.
Promoter holding currently stands at 53.07 percent, with FIIs gradually trimming their stake to 19.54 percent. DIIs, however, have been increasing their exposure, now holding 12.19 percent of the company. Public shareholding rose to 15.20 percent as of March 2025.
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Analyst sentiment remains largely optimistic. Of the 35 analysts covering the stock, 54 percent recommend a ‘Buy’, 23 percent suggest ‘Outperform’, while only a small portion advise caution, with 6 percent giving a ‘Sell’ rating.
Despite margin pressure, the sharp net profit recovery and positive dividend move reinforce confidence in Godrej Consumer’s execution. Continued focus on premium categories and rural penetration is expected to support its growth going forward.
Disclaimer
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Aditya Gaur is the founder of FinanceXaditya and a seasoned stock market investor with over 7 years of experience. Known for building India’s first public dividend growth portfolio showcase, he shares time-tested strategies and real insights that help everyday investors create wealth. With 50,000+ followers across social media, Aditya has become a trusted voice in personal finance and long-term investing.
