Why has no Godrej firm been a part of prime indices?

By Kiran Somvanshi

The 118-years-old Godrej Group has raised aprofitable enterprise in India spanning areas as numerous as aerospace, building, dwelling home equipment, safety options, client items, actual property, processed meals and agriculture. The Godrej model is amongst India’s most trusted manufacturers and its firms determine excessive on innovation and are among the many finest locations to work.

Regardless of this, not one of the Godrej firms have ever been a part of Sensex or Nifty,. Whereas its flagship firm Godrej & Boyce isn’t listed, its different holding firm Godrej Industries has been listed on the bourses since 1993 with its subsidiaries Godrej Shopper Merchandise (GCPL) listed in 2001 and Godrej Properties in 2010. Although these firms do entice excessive investments from FPIs, have given good returns and are commanding excessive valuations, they haven’t but bagged a coveted seat within the benchmark indices, which have seen a rise in consumption-themed shares within the current years.

Godrej Industries is buying and selling at a relative low cost to its subsidiaries. GCPL is the group firm with the biggest M-cap. By the way, not like its friends Dabur, Marico and Britannia, it isn’t a part of the F&O phase. Liquidity might be a difficulty since GCPL has a low free float inventory. Nevertheless, there are low liquidity shares of Bosch, Eicher Motors and Britannia which are traded within the derivatives market.

Traditionally, progress is also a cause for the group’s absence from the broad-based indices. The group has been a late bloomer of types. Its firms, GCPL and Godrej Properties, have begun to indicate pickup in progress lately. Overseas acquisitions have additionally added to scale. The group’s imaginative and prescient for 2020 is to be 10 occasions the dimensions it was in 2010, a CAGR of 29%. Will the execution of the imaginative and prescient catapult GCPL within the benchmark indices? The jury is out on this.

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