Shares of Godfrey Phillips India have become the focus of investor attention following a significant surge of 8.61% today, with stock prices reaching ₹7,650.05 on the National Stock Exchange (NSE). This impressive rise is part of a spectacular rally over the past month, wherein the stock has gained 69.45%, riding high on the back of strong Q3 FY25 results and increased institutional buying.
Today's trading session saw Godfrey Phillips India open at ₹6,841.40, fluctuated between ₹6,570.00 and reached as high as ₹7,687.70. This latest performance closely aligns the stock with its 52-week peak of ₹8,480.00, hinting at possibilities of breaking through previous records. Remarkably, over the past two years, Godfrey Phillips India has delivered astonishing multibagger returns of 301%, demonstrating its appeal among momentum traders.
The catalyst for this bullish trend can be traced to Godfrey Phillips' announcement of its Q3 fiscal results on February 13, where the company reported a consolidated net profit of ₹315.84 crore, marking a solid 48.73% growth year-on-year. Revenue from operations surged by 27.42%, totaling ₹1,895.52 crore thanks to heightened demand for its popular cigarette brands such as Four Square and Marlboro. The company's EBITDA increased by 57.6% to ₹358.8 crore, reflecting improved operational efficiency and rising margins, which jumped from 18.2% to 22.6% year-on-year.
The stock has witnessed intensified trading activity, with six of the last ten sessions recording trading volumes exceeding three times the 50-day average, indicating heightened interest from institutional investors. Anshul Jain, Head of Research at Lakshmi Shree Investment and Securities, remarked, “The spike in volume, coupled with a sharp price rally, suggests strong institutional accumulation. The stock could potentially break its all-time high and reach ₹8,900 in the near term.”
From a technical analysis perspective, Mandar Bhojane from Choice Broking highlighted significant technical indicators supporting the upward movement. “If the stock breaks the next resistance level at ₹6,950, it could achieve a short-term target of ₹7,200,” he said. Current trading positions also show the stock surpassing its 20-day, 50-day, and 200-day exponential moving averages, solidifying the bullish sentiment among traders.
Despite the optimistic outlook, analysts urge caution. A.R. Ramachandran, a SEBI-registered independent analyst, noted, “The stock is bullish but also overbought on daily charts. Investors should book profits if the daily close falls below the support level of ₹6,270.” This cautionary note stresses the importance of monitoring stock performance closely, especially considering the volatile nature of the current market dynamics.
Sharad Agarwal, CEO of Godfrey Phillips, emphasized the company's commitment to expansion and efficiency. “Our plans to enter new markets with new offerings are underway, and we continue to focus on improving our productivity and profitability,” he stated, offering insight on the company's long-term strategic direction.
With the stock's recent performance signaling strong momentum, along with fundamental indicators aligning positively, Godfrey Phillips India has positioned itself as an attractive opportunity for momentum traders. With the current market cap at ₹39,727 crore and significant earnings growth, the company is poised for continued success.
Though the stock is hovering near its all-time high, the bullish momentum driven by institutional support could signal more upside potential for investors willing to navigate the risks involved. Strategic management of investment positions, including placing stop-loss orders, is recommended as the market navigates potential fluctuations.