fmcg
Godfrey Phillips
GODFRYPHLP · Nifty 50
₹2,249
Price 2026-06-17
At a Glance
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Godfrey Phillips scores 85/100 on fundamentals (strong). Godfrey Phillips: BROAD EXPANSION regime.
Fundamental Score: 85/100 · STRONG · 3 signals detected
DuPont Analysis
ROE 24.1% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 24.15% is strong margin-driven and stable. Net margin of 22.6% × asset turnover of 0.8x × leverage of 1.3x.
What This Means
Net margin of 22.6% means the company keeps ₹22.6 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.80x means the company efficiently uses its assets to generate revenue. Leverage of 1.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
42.9%
Operating
29.3%
Net
22.6%
Gross margin 42.9% → operating margin 29.3% → net margin 22.6%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.3x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 153.7x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.1x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 3.1% — moderate. Generating cash after investments.
Peer Comparison
Key Watchpoints
Breaks above ₹2361 (+5%)
Trend reversal confirmation
Breaks below ₹2137 (-5%)
Further downside risk
Fmcg sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only 0.3x net income. Profit not converting to cash — aggressive accounting possible.
Working capital is consuming significant cash. Operational efficiency declining.
Collection cycle changing. Collection improving — positive for cash flow.
Strong insider alignment. Promoters have significant skin in the game.
Growth available at reasonable price. Favourable risk-reward.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes