The shares of this small-cap stock jumped up to 15 percent today after announcing financial results pertaining to Q1FY23-24.
With a market capitalization of Rs 10,000 crores, the stocks of Godfrey Phillips India Limited currently trade at Rs 1,922. The scrip witnessed an intra-day high of Rs 1,975 representing a gain of around 15 percent as compared to the previous close of Rs 1,723.55 apiece.
Such sharp movements in stock prices today are observed after the company, in a regulatory filing with the Bombay Stock Exchange (BSE), announced the financial results for the quarter ending June 2023.
Having a glance at the latest financial results, the company, on a sequential basis, reported an increase in the operating revenues as well as after-tax profits with the former moving up from Rs 968 crores during Q4FY22-23 to Rs 1,233 crores during Q1FY23-24, and, the latter, during the same period, nearly doubled shifting from Rs 111 crores to Rs 221 crores.
Year-on-Year, the above-mentioned metrics showed positive movements with the operating revenues rising from Rs 974 crores during Q1FY22-23 to Rs 1,233 crores during Q1FY23-24, and, the net profits soaring from Rs 132 crores to Rs 221 crores indicating an increase of more than 67 percent.
Historically, the company has a strong record when it comes to the profitability ratios with the return on equity (RoE) increasing from 14.96 percent during FY21-22 to 19.46 percent during FY22-23. Moreover, the return on capital employed (RoCE) moved up from 18.36 percent to 20.82 percent keeping the timeframe the same.
According to the shareholding data available for the June 2023 quarter, the Promoters hold a 72.58 percent stake, and the Foreign Institutional Investors (FIIs) hold a 10.05 percent stake in the company.
Godfrey Phillips India Limited is engaged in the business of manufacturing tobacco products in India. The famous brands under its portfolio are Four Square, Marlboro, etc. Involved in other segments such as tea and other retail products, ‘cigarette’ sales account for the majority of the company’s total revenue
Written by Amit Madnani
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