Multibagger tobacco stock to turn ex-dividend today; hit record high in previous session

Shares of multibagger Godfrey Phillips India Ltd will turn ex-dividend on Friday (August 11). The tobacco firm announced a final dividend of Rs 44 per share during the Q4 and annual earnings announcement. In the previous session, Godfrey Phillips stock ended 0.25% lower at Rs 2172.55 on BSE. Godfrey Phillips stock hit a record high of Rs 2,250 on August 10 (previous session). On the other hand, Godfrey Phillips hit a 52-week low of Rs 1046.55 on September 6, 2022. The stock opened at Rs 2197.95 on Wednesday against the previous close of Rs 2178.05 on BSE. Market cap of the firm stood at Rs 11,295 crore on BSE. The stock has risen 117% in two years and gained 126% in three years, delivering multibagger returns for investors during the period.

In terms of technicals, the relative strength index (RSI) of the Godfrey Phillips stock stands at 75.3, signaling it's trading in the overbought zone. Godfrey Phillips shares have a beta of 1.3, indicating very high volatility in a year.

The stock of the tobacco major has risen 8.19% since the beginning of this year. The share has climbed 29.14% in a month. Total 0.14 lakh shares of the firm changed hands amounting to a turnover of Rs 2.98 crore on BSE.

24 promoters held 72.58 per cent stake in the firm and 44,542 public shareholders owned 27.42 per cent for the quarter ended June 2023. Of these, 42,082 public shareholders held 56.38 lakh shares or 10.84% stake with capital up to Rs 2 lakh. Only six shareholders with 2.27% stake held capital above Rs 2 lakh for the quarter ended June 2023. 109 FPIs held 9.84% stake or 51.15 lakh shares in Q1 of this fiscal.

Financial Performance

Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) rose to Rs 252.8 crore in June 2023 quarter against Rs 201.1 crore in the June 2022 quarter. Operating profit margins too fell to 20.30% in the last quarter against 24.30% in the June 2022 quarter. However, revenue rose to Rs 1298.1 crore in Q1 against Rs 829.9 crore in the corresponding period of the preceding fiscal. Q1 consolidated net profit came at Rs 254.4 crore against a net profit of Rs 142.3 crore in the corresponding quarter last year.

About the Company

Godfrey Phillips Limited is engaged in the manufacturing of cigarettes, tobacco products and chewing products and in trading of tobacco products and other retail products. Its segments include cigarette, tobacco and related products; and retail and related products. It offers cigarette under various brands, including Marlboro, Four Square, Red & White, Cavanders, Stellar and North Pole and Tipper.