What's fuelling the stock price of Godfrey Phillips India? Up 106% in CY25

Business Standard

2 days ago

Godfrey Phillips India share price
Shares of Godfrey Phillips India hit a new high of ₹10,749.20; soaring 9 per cent on the BSE in Wednesday's intra-day trade in an otherwise weak market. In the past two trading days, the stock price of the flagship company of KK Modi Group has rallied 20 per cent after the company reported strong earnings for the quarter ended June 2025 (Q1FY26). The company also announced 2:1 bonus shares.
Thus far in the calendar year 2025 (CY25), the market price of the fast moving consumer goods (FMCG) company has more-than-doubled or zoomed 106 per cent, as compared to 3 per cent rise in the BSE Sensex. The stock has appreciated by 169 per cent from its 52-week low of ₹4,000 hit on August 6, 2024. In the previous calendar year 2024, the stock of Godfrey Phillips India had appreciated by 148 per cent. Track Stock Market LIVE Updates
What's fuelling the stock price of Godfrey Phillips India
The board of Godfrey Phillips India on Monday announced its maiden bonus issue in the ratio of 2:1 viz., 2 new bonus equity shares of ₹2 each for every 1 existing equity share of ₹2 each.
The company has fixed September 16, 2025 as the 'Record Date' for determining the entitlement of the shareholders of the company to receive bonus equity shares.
Meanwhile, Godfrey Phillips India has continued its growth momentum from FY24 to FY25 and to FY26. The company reported a promising start to FY26, with April to June quarter (Q1FY26) financial results reflecting sustained growth momentum over FY25.
The company has recorded consolidated Gross Sales Value of ₹4,094 crore and Net Profit (from continuing operations) of ₹356 crore, representing an increase of 33 per cent and 25 per cent respectively when compared to the corresponding period in last year.
The company's net revenue increased 36.5 per cent year-on-year (Y-o-Y) at ₹ 1,486 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 25.2 per cent Y-o-Y at ₹338 crore; while margins stood at 8.3 per cent against 8.7 per cent in a year ago quarter.
The management said the company's initiatives to expand into new markets with differentiated offerings are progressing well.
Godfrey Phillips has delivered robust domestic cigarette sales volume growth in Q1FY26. The company's topline is ably supported by unmanufactured tobacco export of ₹427 crore in Q1FY26 which continues to show an upward trend.
Godfrey Phillips has strengthened partnership with Philip Morris International in the manufacture and distribution of Marlboro brand cigarettes in India.
The company's portfolio comprises established cigarette brands such as Four Square, Red & White, Stellar, and Cavenders; the company also manufactures and distributes the Marlboro brand of cigarettes, which enjoy strong customer loyalty and has been a significant revenue driver. Cigarette volume growth momentum is expected to sustain with the government not increasing taxes on cigarettes, according to analysts. Check List of Q1 results today
Sector outlook
Cigarette volume growth momentum is expected to sustain with the government not increasing taxes on cigarettes. The domestic cigarettes industry in the past was affected by a sustained rise in taxes and regulatory regime along with a sharp hike in illegal trade in the past few years, especially at the premium end, which continues to pose significant challenges to the legal cigarettes industry. However, in recent times, the government has undertaken stringent actions to curb illicit cigarette sales. This along with lower price hikes in the cigarette portfolio will help cigarette companies post better volume growth, according to Mirae Asset Sharekhan.