A mid-cap stock is currently in the spotlight following its announcement to invest Rs. 600 crore towards expanding its chemical units, highlighting its strong growth potential. The company’s CEO has set an ambitious goal to double its turnover to Rs.5,000 crore over the next 3-4 years, signaling a clear focus on scaling up operations and capitalizing on new opportunities in the chemical sector.
Price Action
During Monday’s trading session, the share price of Godrej Industries Ltd reached an intra-day high of Rs.1,119.85 per share, rising 0.5 percent from its previous close of Rs.1,114.30 per share. However, the shares later retreated to Rs.1,106.55 apiece. Over the past five years, the stock has delivered over 200 percent returns.
Strategic Investments
Godrej Industries has announced plans to invest Rs.600 crore to expand its chemical units in Gujarat and Maharashtra. This strategic move reflects the company’s commitment to enhancing its production capacity and tapping into the growing demand for chemicals. By strengthening its operations in these key states, the company aims to further solidify its position in the industry while preparing for significant growth in the coming years.
The company’s CEO has set an ambitious goal to double the company’s turnover to Rs.5,000 crore within the next 3-4 years. This growth target underscores Godrej Industries’ focus on scaling up its business and capitalizing on emerging opportunities in the chemical sector. With this bold vision, the company is positioning itself for a period of robust expansion, aiming to increase its market share and drive long-term profitability.
IPO Plans
Godrej Capital, the financial services arm of Godrej Industries, is planning an IPO within the next three years. The company aims to grow its assets under management (AUM) to Rs.30,000 crore by March 2026, having already surpassed Rs.15,000 crore.
Financial Performance
Godrej Industries Ltd reported remarkable financial growth for Q3 FY25, with revenue soaring to Rs.4,825 crore, reflecting an increase of 34 percent compared to Rs.3,590 crore in Q3 FY24. Furthermore, the company’s Profit After Tax (PAT) surged by 89 percent, rising to Rs.312 crore from Rs.165 crore in the similar time period.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 7.47 percent and a Return on Equity (ROE) of 4.77 percent. Its Price-to-Earnings (P/E) ratio stands at 77.11, higher than the industry average of 28.03. Furthermore, the company maintains a current ratio of 2.29, a debt-to-equity ratio of 4.14, and an Earnings Per Share (EPS) of Rs.14.45.
Written by – Siddesh S Raskar
