GODREJ INDUSTRIES : market value of GIL’s shareholding in listed group companies was Rs 65,611

GODREJ INDUSTRIES : market value of GIL’s shareholding in listed group companies was Rs 65,611

  • Crisil Ratings has assigned its ‘Crisil AA+/Stable’ rating to Rs 2,000 crore non-convertible debentures (NCDs) of Godrej Industries Ltd (GIL) while reaffirming its rating on the NCDs worth Rs 6,250 crore and commercial paper programme at ‘Crisil AA+/Stable/Crisil A1+’
  • The ratings continue to reflect strong financial flexibility arising from GIL’s shareholding in the listed group companies which have healthy credit profiles. 
  • GIL has a track record of maintaining healthy net debt cover (Crisil Ratings adjusted ratio of total market value of investments to net debt) of 6-10 times over the past five fiscals through 2025. 
  • The market value of GIL’s shareholding in listed group companies was Rs 65,611 crore against net debt of Rs 9,696 crore (netting off cash balance of Rs 684 crore) as on August 31, 2025. 
  • Further, GIL’s investment amounting to Rs 3,454 crore as on June 30, 2025, in Godrej Capital Ltd (GCL) provides additional financial flexibility. 
  • While the net debt may increase over the medium term to up to Rs 12,000 crore, the management has articulated to always maintain a net debt cover of well above 4.75 times. 
  • Crisil Ratings also factors in GIL’s management’s stance on monetisation of its investments, if required, to support cash flow mismatches as well as maintenance of healthy net debt cover. 
  • Further, GIL continues to benefit from strong reputation of the Godrej group among lenders and investors in the capital markets.
  • GIL continues to invest in GCL, the subsidiary engaged in financial services, to fund its growth plans. 
  • These infusions have resulted in increase in GIL’s adjusted gearing to 5.98 times as on March 31, 2025 from 4.03 times as on March 31, 2023. 
  • While comfort is derived from the significant market value of quoted investments relative to overall debt planned, higher-than-expected outflow towards group companies will remain a key rating sensitivity factor. 
  • GIL’s credit risk profile will also remain susceptible to market risk and large refinancing requirements.
  • Dividend income from listed group companies and operating profit from chemical business are expected to be sufficient to service the interest expense.
  • With respect to the company’s chemical business, operating income and profit before interests and taxes (PBIT) margin witnessed a recovery to Rs 3,392 crore and 10.6%, respectively, in fiscal 2025 against Rs 2,697 crore and 9.4%, respectively in the previous fiscal. 
  • This was on account of increased sale volumes and higher realisations following substantial revenue de-growth of 35% in fiscal 2024. 
  • The operating income and PBIT margin stood at Rs 883 crore and 9.7%, respectively in the first quarter of fiscal 2026 (Q1 2026) as compared to Rs 732 crore and 10.7% for the corresponding period in fiscal 2025.


GODREJ INDUSTRIES : Holding company having 42000 cr investments 

1. https://youtu.be/z8FTUjhxhz8?si=KOPopKguaR0_CwTI

2. https://youtube.com/shorts/xGZvWTnRago?si=utLKZ_5cZaDy7BAg

3. https://youtu.be/BvM4VHiLWS8?si=lR7Gw4cqauLqSQEr

I studied deeply Godrej Industries when the stock was struggling in 2021-2022 and got confident with future outlook that company has mentioned many times. 

It takes a lot of time and effort to build conviction. This is the nature of equity investing.

Own Businesses: Chemicals, Estate Management, Finance & Investments

  • FY2023
  • Net Profit:  975 Vs  654  (  49% )
  • Total  Investment at cost  : 5,725
  • Market Value of investment: 42000 cr
    • Godrej Consumer Products (GCPL), Godrej Properties (GPL), Godrej Agrovet
    • Company invested `19 Crore in Godrej Properties Limited and `232 Crore on Godrej Agrovet Limited by purchasing shares from the secondary market
    • Company has further invested `685 Crore in Godrej Capital Limited  
  • Chemicals
    • Chemicals business had an outstanding year. The Total revenue of the business stood at `4,173 Crore and recorded a growth of 36%, operating profit of the business stood at `706 Crore and recorded growth of 207% over the previous year. The business did well across its product categories.   
  • E – Emergent Businesses   
    • During the year, GHFL  had Asset Under Management (AUM) as on March 31, 2023 at ~`3,800 Crore as compared to ~`1,800 Crore as on March 31, 2022. 
    • During the year GFL  had Asset Under Management (AUM) as on March 31, 2023 at ~`1,300 Crore as compared to ~`45 Crore as on March 31, 2022
    • Godrej Industries has committed to infuse ₹1,500 crore into its financial services venture
      • With the aim of scaling up its ambition in the financial services sector, Godrej Industries Limited (GIL) today announced the launch of Godrej Capital Limited (GCL). The business will expand its retail operations in six new cities this financial year in addition to diversifying customer segments and launching new business lines
      • With a near-term aim of building an ₹30,000 crore balance sheet by 2026, GIL has committed to invest ₹1,500 crore in capital in the financial services arm, and expects the business to require a total of ₹5,000 crore of equity investment by 2026.
      • The company will continue maintaining focus on the growth of secured loans consisting of home loans and Loans Against Property (LAP).
      • Godrej Capital currently has its footprint across Mumbai, Bengaluru, Delhi NCR, Ahmedabad, and Pune and will soon be operational in six new cities, i.e., Jaipur, Chandigarh, Hyderabad, Chennai, Indore and Surat.

  • Thank you for contacting Rounaq! Please let us know how we can help you. 

    Whatsapp: 7838491131

    SEBI registered RA : Rounaq Bakshi
    Waheguru

Comments

Post a Comment

Popular posts from this blog

Transcript of NMDC Limited post Q4 & FY 2024-25 Results

Image
Transcript of NMDC Limited post Q4 & FY 2024-25 Results Growth in PAT on an annual or a year-on-year 12-month basis of around 19% and PBT after exceptional item of around 16% Gold operations in Legacy, the first year was have also stabilized Legacy in the last 2 months, 3 months.  And hopefully, in this financial year, Legacy would also be showing good profits IMPORTS India which imports around 55 million, 60 million tons is likely to go up to 150 million to 160 million tons of import for India in terms of coking coal.  Have entered into arrangement with SAIL 60% of total sales as of date is routed through SAIL because send it to their stocking yard.  So based on the user charge, they also market mmdc products 40% still Nmdc market directly in terms of HR coils 2025 year will be much more substantially action packed in terms of NMDC Open new mines within India, coal and iron ore Outside India, we hope to acquire a few mines.  This will be a year where it will be ...
Read more

Looking to park some excess funds for the short term.?

Image
Looking to park some excess funds for the short term.  LiquidBeES by Nippon - has been the default choice for years. But lately, it’s become muscle memory to run everything past ChatGPT.  Just a quick: “Is there a better option than LiquidBeES?” It turns out, there is.  LIQUIDCASE by Zerodha AMC.  Difference was not subtle and decision was easier : - Expense ratio: Less than half of LiquidBeES - Net returns: ~6.2% vs ~5.7% (1-year annualized) - Same safety, same liquidity - AUM already >1/3rd of LiquidBeES in record time This is how discovery is changing. And this is how smart products go viral. Zerodha didn’t try to educate the market.  Discovery is no longer driven by ads or advisors.  It’s driven by habit, trust, and tools like ChatGPT. And when you get it right, traction follows fast. I won’t be surprised if LIQUIDCASE overtakes LiquidBeES in under 18 months. Thank you for contacting Rounaq! Please let us know how we can help you.  About me :...
Read more

𝐖𝐡𝐲 𝐃𝐨 𝐍𝐑𝐈𝐬 𝐈𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚?

Image
  𝐖𝐡𝐲 𝐃𝐨 𝐍𝐑𝐈𝐬 𝐈𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚? Whether you're living in the US, UAE, UK, or Singapore; India continues to be a hotspot for wealth creation. But why do so many NRIs still invest here? Here’s why 👇 ✅ Higher Returns – Indian equity markets, mutual funds, and even fixed deposits offer attractive long-term returns. ✅ Tax-Free Income – Interest from NRE and FCNR deposits is tax-free in India. Plus, DTAA helps avoid double taxation. ✅ Currency Edge – You invest in INR, and with the right timing, your gains in foreign currency terms could be even higher. ✅ Diversification – Indian assets like gold, real estate, and stocks add balance to a global portfolio. ✅ Future Ready – Planning to return to India someday? Build your base early with property or retirement-focused investments. ✅ Emotional Roots – Beyond numbers, India is still home. 💡 Whether it’s for wealth creation, retirement planning, or building assets back home, India offers a solid mix of growth + stability...
Read more