Shares of this mid-cap company, involved in tobacco products, confectionery, tea, and real estate, surged nearly 15 percent to Rs.7,320 per share to a 52-week high, following the announcement of a board meeting to finalize plans for issuing bonus shares.
Price Variation
In Friday’s session, Godfrey Phillips India Limited’s share price jumped 14.5 percent to a 52-week high of Rs.7,320 per share, up from Rs.6,393.05 apiece, before closing at Rs.7,118. The stock has delivered over 240 percent return in the past year.
What happened
The Board of Directors of Godfrey Phillips India Ltd (GPI) is to meet on Friday, 20th September 2024, to consider and recommend the issuance of bonus shares to the shareholders.
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The proposed bonus issue is in the ratio of 2:1, meaning shareholders will receive 2 fully paid-up equity shares of Rs.2 each for every 1 fully paid-up equity share held. This will be achieved through the capitalization of the company’s reserves, subject to approval by the shareholders.
Financial Performance
Looking at the company’s financials, Godfrey Phillips India reported a revenue of Rs.1,170 crore for Q1 FY25, marking a 12 percent increase from Rs.1,046 crore in the same quarter last year. However, Profit After Tax (PAT) fell by 10 percent to Rs.229 crore, down from Rs.254 crore in the previous year’s quarter.
Global Footprints
Godfrey Phillips India has a significant market presence in around 35 countries across Latin America, the Middle East, Southeast Asia, and Eastern Europe.
GPI’s revenue consists of 70 percent from domestic tobacco sales, 23 percent from international tobacco markets, and 7 percent from non-tobacco products.
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Segmental Revenue
The company generates 93.3 percent of its total revenue from cigarette and tobacco products, with the remaining 6.7 percent coming from retail and related products.
Company Profile
Godfrey Phillips India Ltd. is a leading tobacco manufacturer, known for its cigarette brands like Marlboro, Four Square, Red & White, and Cavanders. Besides tobacco, GPI has diversified into confectionery, pan masala, tea, and real estate.
Written by – Siddesh S Raskar
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