Synopsis:
Godfrey Phillips India surged by 3% on Tuesday after the company announced that it will issue bonus shares in the ratio 2:1. However, shareholders are yet to approve it.
With a market capitalisation of Rs 45,541 crores, the shares of Godfrey Phillips India Ltd are currently trading at Rs 8,759 per share, down by 11 percent from its 52-week high of Rs 9,824 per share. Over the past five years, the stock has delivered a robust return of 854 percent.
Godfrey Phillips, through a stock exchange filing, announced that the Board of Directors has put forward a plan to issue bonus shares at a ratio of 2:1, subject to shareholders’ approval. This means that for every fully paid-up equity share you own, which is valued at Rs. 2 each, you’ll receive 2 extra shares of the same value for free.
These bonus shares will be drawn from the company’s existing reserves. So, if you currently own 100 shares, you’ll be getting 200 bonus shares, bringing your total to 300 shares, all fully paid-up.
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Financial Highlights
The company reported a consolidated revenue of Rs 5,611 crore in FY25, up by 27 percent from its FY24 revenue of Rs 4,420 crore. Coming to its profitability, the tobacco manufacturer reported a net profit growth of 21 percent to Rs 1,072 crore in FY25 as compared to Rs 884 crore in FY24.
The stock delivered an impressive ROE and ROCE of 24.32 percent and 29.62 percent, and is currently trading at a P/E of 39.50x as compared to its industry average of 30.91x.
Godfrey Phillips India Limited stands out as a prominent player in the FMCG sector, focusing on the production and sale of cigarettes, tobacco products, and chewing items both in India and across international markets.
The company boasts well-known brands like Red & White and Funda, and it also produces and distributes Marlboro through a licensing agreement with Philip Morris. Additionally, Godfrey Phillips has made a significant mark in the pan masala and confectionery segments. With an extensive distribution network, it effectively serves both premium and mass-market consumers.
Written by satyajeet mukherjee
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