Let us first talk about the company Overview:

COMPANY OVERVIEW

The Godrej Group, which was founded in 1897, has its origins in India's freedom & Swadeshi
movement. They now have 1.1 billion customers spanning products, estate development,
electronics, agribusiness, and a variety of other industries. In fact, their motors are now fuelling
several of India's satellite launches, extending their geographic presence outside Planet. They are a
fast-growing company with a revenue of over USD 4.1 billion and interesting, ambitious plans.
They're also making an impact via 'shared value' Goods & Green initiative, which aims to make India
increasingly accessible and environmentally friendly.

Industry Overview

FMCG industry is India's fourth biggest, with household and personal care products accounting for
half of all FMCG sales. The sector's main growth catalysts have been increased awareness, greater
access, and increasing urbanization. The national audience (which accounts for about 55 percent of
the total income earned by the FMCG sector in India) is the greatest contributor to overall revenue.
Rural India, on the other hand, has seen quicker growth in the FMCG sector in recent years than
urban India. Rural and semi-urban areas are rapidly expanding, with FMCG items accounting for half
of all rural expenditure.

Industry - India's FMCG market is predicted to grow at a CAGR of 14.9 percent from US$ 110 billion
in 2020 to US$ 21.5 billion by 2025, up from US$ 110 billion in 2020.

Investment Summary

Market Data Financial Data Valuation

Particulars Market
Price Cap Net Debt EV Sales EBITDA Earnings EV/Sales EV/EBITDA P/E
Company Name (Rs.) (In Cr.) (In Cr.) (In Cr.) (In Cr.) (In Cr.) (per share) x x x
587.5 1,03,861.5 1,03,939.6 10,494.7 2,551.2
Dabur India 0 7 78.04 1 5 9 10.25 9.90 40.74 57.32
504.2 65,167.5 64,485.5 9,078.0 1,740.9
Marico 5 8 -682.00 8 0 7 9.22 7.10 37.04 54.69
515.8 22,930.2 22,652.1 3,114.1 1,046.2
Emami 5 4 -278.11 3 6 9 12.59 7.27 21.65 40.97
Procter and 15,606.0 50,658.0 42,606.6 3,570.2 923.6
Gamble 0 0 -8,051.33 7 4 2 189.83 11.93 46.13 82.21
957.5 97,917.2 99,308.3 11,844.2 2,577.4
Godrej Consumer 5 5 1,391.10 5 6 3 17.22 8.38 38.53 55.61
Average: 8.92 36.82 58.16
Median: 8.38 38.53 55.61
 According to relative valuation (on the basis of comparing the trading), Godrej’s P/E ratio is 55.61,
while the industry average P/E multiple is 58.16, indicating that Godrej is a little undervalued
company when compared to its rivals.

QGLP Framework

Quality of Business Management  
Sunil Kataria, our Chief operating officer for India and SAARC, discusses how GCPL is
focusing mostly on segments and significant product launches, as well as expanding
go-to-market presence. Sunil Kataria also highlights how much we are adapting and
innovating to be more flexible by utilizing technology throughout our operations and
developing new skills.

 In FY'22, Godrej Consumer Products forecasts double-digit development. Just after

pandemic, the Godrej group business is concentrating on creating a fully integrated
home and personal care company, as well as growing its footprint in rural parts of the
country, in which it has acquired 30% fresh wholesalers.

Growth in Earnings   Revenue - In FY22, the net profit increased to 479 from 458. Sales growth of 10% and
two year CAGR of 10%.
 For financial year 2020-21, consolidated revenues climbed by 11%, while EBITDA grew
by 14%.

 In FY21, PAT was Rs. 1720.82 crore, up from Rs. 1496.58 crore the previous year. 

 EPS -The company's earnings per share increased from Rs 16.83 in FY20 to Rs 14.64 in
FY21.

Longevity of Quality and Growth   Product Launch - New items launched as part of a strategic business plan. Dabur amla
hair repair solution, Dabur fruit and veggie clean, Dabur Anmol gold, Vatika sanitizing
body wash, and so on. 

 Investments — In the fiscal year 2020-21, Dabur would invest 311 crore in
capital expenditure to expand manufacturing capacity at its existing units in order
to fulfil growing demand for Ayurvedic Health Care products. Ayurvedic medications
and health supplements will be made with a Rs 550 crore investment, according to the
business. 

 Business Diversification — Following the second wave of covid and the growth of the
e-commerce sector, the company developed a series of new online-only items. 
Price   P/E Ratio – The P/E ratio 55.61, compared to 43.29 for the sector. 

 P/B Ratio – In FY21, the P/B Ratio is 10.28. 

 EV/EBITDA Ratio – In FY21, the EV/EBITDA ratio is 38.53, compared to 37.78 in FY20.