Godrej Industries Ltd

₹ 618 -1.26%
Jan 21 - close price
About

Godrej Industries is one of the holding companies of Godrej Group. It is one of the leading manufacturers of oleochemicals on a standalone basis.

Godrej Industries is promoter of Godrej Agrovet Ltd and Godrej Properties Ltd. It also has stake in Godrej Consumer Products Ltd [1].

Key Points

Oleochemicals business [1]
Godrej Industries Ltd (GIL) is one of India's leading manufacturers of oleo-chemicals (derivatives of vegetable and animal oils & fats). Fatty acids accounts for 41% of divisions revenue, followed by fatty alcohols (30%), surfactants (22%) and glycerin accounts for the rest 7% of revenues. [2]

It derives ~30% of its turnover from export operations. Its manufacturing facilities are located in Valia, Gujarat and Ambernath, Maharashtra. [3]

  • Market Cap 20,803 Cr.
  • Current Price 618
  • High / Low 674 / 426
  • Stock P/E 52.2
  • Book Value 199
  • Dividend Yield 0.00 %
  • ROCE 6.85 %
  • ROE 4.71 %
  • Face Value 1.00

Pros

Cons

  • Stock is trading at 3.10 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • The company has delivered a poor sales growth of 4.60% over past five years.
  • Company has a low return on equity of 8.43% for last 3 years.
  • Earnings include an other income of Rs.1100.41 Cr.
  • Dividend payout has been low at 2.19% of profits over last 3 years
  • Promoter holding has decreased over last 3 years: -7.53%

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: Chemicals Industry: Chemicals

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
2,418 2,934 2,845 2,629 2,696 3,121 1,980 2,386 2,356 2,611 2,890 3,280
2,363 2,701 2,583 2,478 2,538 2,910 1,877 2,253 2,264 2,627 2,748 3,112
Operating Profit 54 233 262 151 159 211 103 134 92 -16 142 169
OPM % 2% 8% 9% 6% 6% 7% 5% 6% 4% -1% 5% 5%
Other Income 246 472 182 428 237 178 213 300 292 209 292 307
Interest 119 134 124 129 120 117 114 117 113 124 134 147
Depreciation 41 42 56 58 59 61 57 61 62 63 64 67
Profit before tax 140 528 263 393 216 210 145 256 210 6 237 261
Tax % 13% 20% 32% 5% 27% 51% 26% 20% 19% 1,585% 22% 23%
Net Profit 77 297 103 311 113 27 69 150 132 -16 139 144
EPS in Rs 2.30 8.84 3.07 9.24 3.36 0.79 2.04 4.45 3.92 -0.47 4.12 4.27

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
3,408 4,293 5,543 6,866 7,799 9,101 7,454 8,365 9,076 10,848 11,291 9,334 11,138
3,614 4,080 5,276 6,491 7,343 8,615 7,061 7,708 8,805 10,233 10,479 9,020 10,751
Operating Profit -206 213 267 375 455 487 392 657 271 615 812 314 387
OPM % -6% 5% 5% 5% 6% 5% 5% 8% 3% 6% 7% 3% 3%
Other Income 619 252 190 220 201 317 255 520 915 1,142 996 1,015 1,100
Interest 150 88 111 110 119 192 343 402 413 508 491 469 518
Depreciation 50 55 56 59 70 93 117 148 175 163 234 242 255
Profit before tax 213 323 290 426 467 519 187 626 597 1,086 1,083 617 715
Tax % 21% 23% 33% 32% 37% 26% 58% 27% 19% 20% 25% 37%
Net Profit 203 293 292 391 326 402 161 256 338 590 554 335 398
EPS in Rs 11.66 9.72 11.98 4.78 7.63 10.05 17.53 16.46 9.94 11.84
Dividend Payout % 23% 19% 19% 15% 18% 15% 37% 23% 17% 7% 0% 0%
Compounded Sales Growth
10 Years: 8%
5 Years: 5%
3 Years: 1%
TTM: 9%
Compounded Profit Growth
10 Years: 5%
5 Years: 17%
3 Years: 12%
TTM: 11%
Stock Price CAGR
10 Years: 13%
5 Years: 7%
3 Years: 6%
1 Year: 43%
Return on Equity
10 Years: 8%
5 Years: 8%
3 Years: 8%
Last Year: 5%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Sep 2021
32 32 32 34 33 34 34 34 34 34 34 34 34
Reserves 1,734 1,899 2,335 3,072 2,701 3,194 3,049 3,167 3,301 4,313 5,755 7,520 6,680
Borrowings 1,481 1,756 2,865 2,829 4,167 5,885 7,200 7,554 6,918 7,116 7,275 10,020 12,844
1,129 1,722 3,127 3,490 4,307 4,392 3,850 4,237 6,500 6,530 7,143 11,209 11,661
Total Liabilities 4,376 5,408 8,359 9,424 11,208 13,504 14,133 14,991 16,753 17,993 20,207 28,783 31,220
958 1,126 1,193 1,170 1,650 1,837 2,828 3,281 3,302 3,824 4,049 4,520 4,952
CWIP 39 30 214 628 466 775 274 54 271 202 334 444 408
Investments 927 789 1,153 1,362 2,336 2,691 3,052 3,203 4,137 5,473 6,594 9,952 9,619
2,452 3,463 5,799 6,264 6,757 8,202 7,979 8,452 9,042 8,494 9,229 13,867 16,240
Total Assets 4,376 5,408 8,359 9,424 11,208 13,504 14,133 14,991 16,753 17,993 20,207 28,783 31,220

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
-108 -383 -1,241 345 -394 -1,050 199 569 1,689 1,240 392 -664
-23 236 -222 -767 -901 -459 -185 -234 -1,016 -1,360 -1,874 -5,156
154 156 1,472 403 1,420 1,409 2 -528 -959 1,056 1,349 5,772
Net Cash Flow 23 9 10 -19 126 -99 16 -193 -286 936 -133 -47

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 45 25 29 25 25 25 42 40 40 39 50 59
Inventory Days 152 171 298 277 290 325 437 356 299 161 171 594
Days Payable 56 81 153 88 83 68 100 82 65 43 63 277
Cash Conversion Cycle 142 115 174 214 232 282 378 313 274 157 158 376
Working Capital Days 165 137 178 144 142 180 238 222 103 83 130 255
ROCE % 4% 7% 6% 7% 7% 6% 4% 9% 8% 13% 12% 7%

Shareholding Pattern

Numbers in percentages

Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021
74.72 61.33 61.33 61.38 61.39 62.21 64.20 64.96 66.37 67.19 67.19 67.18
11.93 12.12 11.87 11.90 11.99 11.22 9.27 9.06 8.59 7.79 7.76 8.45
4.79 4.70 4.59 4.38 4.64 4.62 4.71 4.69 4.82 5.06 5.17 3.76
8.56 21.85 22.21 22.34 21.98 21.95 21.82 21.28 20.22 19.95 19.88 20.61

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