Shares of Godfrey Phillips India jumped nearly 10 per cent in Monday’s trade after the cigarettes and tobacco products maker posted a stellar profit in the second quarter (Q2), which ended on September 30.
The stock surged 9.59 per cent to hit an intraday high — also its 52-week high — of Rs 1,838. Godfrey Phillips zoomed more than 37 per cent in the past month. On a year-to-date (YTD) basis, the stock traded nearly 60 per cent higher.
A total of 32,000 shares of the company changed hands, amounting to a turnover of Rs 5.67 crore on BSE. Godfrey’s market capitalisation (m-cap) climbed to Rs 9,419.48 crore.
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Market experts largely remained positive on the stock on account of healthy quarterly numbers.
AK Prabhakar, Head of Capital, IDBI Capital, said, “Q2 numbers of the company are very supportive. No change in taxes (a stable tax regime) and a decline in cigarette smuggling helped it generate strong revenue. The shares could witness another 15 per cent upside in the near term.”
A R Ramachandran from Tips2trades opined to “book profits at current levels”. He said, “Stellar Q2 FY23 results with an overall positive sentiment relating to markets have led to Godfrey Phillips scaling to a 52-week high today. Technically, the stock is overbought and investors should book profits at current levels or keep a stop loss of Rs 1,780. New buy should be initiated only on a decent correction near Rs 1,380-1,400 levels.”
Vishal Wagh, Research Head, Bonanza Portfolio Ltd, said, “One can initiate a long position in Godfrey Phillips India at a CMP (current market price) Rs 1,800. A fall in the price — till Rs 1,770 levels — can be used as buying opportunity for the upside target of Rs 2,100. However, the bullish view will be negated if the scrip closes below the support level of Rs 1,659.90.”
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Godfrey Phillips reported a 92.32 per cent rise in Q2 profit, at Rs 201.82 crore, as against Rs 104.94 crore in the year-ago period. Net sales of the company rose 60.18 per cent to Rs 1,012.13 crore in the September quarter.
Meanwhile, Indian equity benchmarks traded on a lower note during late deals today.