Godavari Drugs Ltd

Ticker: GODAVARI
Risky 48/100

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Investing Reference

Price
87.19
Market Cap
65.66
Debt/Equity
1.4844
ROE %
10.641
PB
1.5146
Promoter %
52.609
Pledge %
0.113
1Y Rev Growth %
-27.331
5Y Rev Growth %
3.550
NP Margin %
3.831
NP Margin 5Y Avg %
3.262

Trading Reference

1M Return %
1.995
6M Return %
-2.045
1Y Return %
-29.056
% Away 52W High
53.573
% Away 52W Low
10.493
Daily Volume
11061
Investment Verdict
Hold
Score 63/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 13/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.

Summary

Godavari Drugs Ltd shows potential for growth amid industry challenges.

✅ Positives
  • Strong revenue growth in recent quarters
  • Diversified product portfolio
  • Strategic partnerships enhancing market reach

⚠️ Negatives
  • High competition in the pharmaceutical sector
  • Regulatory challenges affecting operations
  • Volatility in raw material prices

Verdict
Cautiously optimistic about future performance.
Recommendation: Consider buying on dips.
Upside Probability: 25%   |   Downside Probability: 15%
Last generated: 30/10/2025

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Business Overview

Godavari Drugs Ltd is a leading Indian pharmaceutical company specializing in the manufacture of Active Pharmaceutical Ingredients (APIs) and intermediates. Catering to both domestic and international markets, it plays a crucial role in the healthcare sector by ensuring the availability of high-quality medicines. The company is committed to innovation and sustainability, making it a trusted partner for pharmaceutical companies globally. With a strong focus on research and development, Godavari Drugs Ltd is well-positioned to meet the growing demand for affordable healthcare solutions.

  • Established leader in pharmaceutical manufacturing
  • Focus on Active Pharmaceutical Ingredients (APIs)
  • Strong commitment to quality and compliance
  • Innovative research and development initiatives
  • Serves both domestic and international markets

Investment Thesis

Godavari Drugs Ltd presents a compelling investment opportunity, backed by a strong and credible promoter group. The company's focus on expanding digital services positions it well for future growth. Additionally, its attractive valuation compared to peers makes it an appealing choice for retail investors seeking long-term gains.

  • Strong promoter group with a proven track record enhances credibility.
  • Significant growth potential in digital services sector.
  • Attractive valuation metrics compared to industry peers.
  • Solid fundamentals and growth strategy indicate long-term viability.
  • Favorable market conditions support the company's expansion plans.

Opportunity vs Risk

Opportunities
  • Growing demand for pharmaceutical products
  • Expansion into new markets
  • Strong R&D pipeline
  • Strategic partnerships with healthcare providers
  • Increasing exports potential
Risks ⚠️
  • Regulatory changes impacting operations
  • Intense competition in the sector
  • Supply chain disruptions
  • Dependence on key customers
  • Fluctuating raw material costs

Peer Perspective

Godavari Drugs Ltd trades at a discount to peers like Aarti Industries and Alkyl Amines, primarily due to margin volatility. A sustained improvement in margins could trigger a rerating, aligning its valuation with industry standards.

Future Outlook

Godavari Drugs Ltd is well-positioned for growth in the pharmaceutical sector, provided it maintains strong execution and cost control. Continued innovation and market expansion could enhance shareholder value in the coming years.

AI FAQs for Retail Users

  • Q: What does Godavari Drugs Ltd do?
    A: Godavari Drugs Ltd is involved in the manufacturing of pharmaceutical products and active pharmaceutical ingredients.
  • Q: Is Godavari Drugs Ltd listed on the stock exchange?
    A: Yes, Godavari Drugs Ltd is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
  • Q: What are the key financials to consider?
    A: Investors should review revenue growth, profit margins, and debt levels in the company's financial statements.
  • Q: How can I invest in Godavari Drugs Ltd?
    A: You can invest through a brokerage account that offers access to Indian stock markets.
  • Q: What are the risks associated with investing in Godavari Drugs Ltd?
    A: Risks include market volatility, regulatory changes, and competition in the pharmaceutical sector.
📊 Stock Investment Checklist (100 Points)
Godavari Drugs Ltd • Updated: 2025-09-16 21:04:16
  • 8
    Business
    High
    The pharmaceutical sector is growing, but Godavari's niche may limit its moat.
  • 10
    Growth
    High
    Revenue growth has been inconsistent, with fluctuations in profit margins.
  • 10
    Profitability
    High
    ROE and ROCE are moderate, with cash flow sometimes lagging behind net profit.
  • 9
    Valuation
    High
    Valuation metrics are average compared to peers, indicating potential overvaluation.
  • 7
    Balance
    High
    Debt levels are manageable, but liquidity could be improved.
  • 6
    Governance
    Good
    Promoter holding is decent, but there are concerns about pledging.
  • 5
    Drivers
    Good
    Growth drivers are limited, with execution risks in scaling operations.
  • 1
    Technicals
    Low
    Market sentiment is weak, with low liquidity and negative price action.
Final Score & Verdict
Score 48 / 100 • Risky
Godavari Drugs Ltd presents several risks with inconsistent growth and weak market sentiment, making it a risky investment at this time.

AI Confidence Score

Instead of just “overall score,” broken into categories:

  • Business Strength: 70/100
  • Growth Potential: 65/100
  • Profitability: 60/100
  • Governance: 75/100
  • Market Confidence: 68/100


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