Godfrey Phillips shares defy market correction, zoom 15% to hit record high; here's why

Shares of Godfrey Phillips India Ltd rose sharply in Friday's trade to scale their all-time high level. Despite a deep correction in domestic benchmarks, the stock jumped 14.50 per cent to hit a record high of Rs 7,320.

Today's uptick in the share price came after the company's board said it will meet on September 20 to consider and approve a bonus issue of shares in the ratio of 2:1. If approved, investors will get 2 additional shares for every share they hold.

"The Board of Directors of the Company is scheduled to be held on Friday, 20th September 2024 to consider and recommend to the shareholders for their approval, issue of bonus shares in the ratio of 2:1 i.e. 2 (Two) new fully paid-up Equity Shares of Rs 2 each for every 1 (One) existing fully paid-up Equity Share of Rs 2 each, to the Equity Shareholders of the Company by capitalization of reserves," it stated in an exchange filing.

Bourses BSE and NSE have put the securities of Godfrey Phillips under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The stock saw high trading volume on BSE today as around 28,000 shares were last seen changing hands on BSE today. The figure was higher than the two-week average volume of 16,000 shares. Turnover on the counter came at Rs 19.27 crore, commanding a market capitalisation (m-cap) of Rs 37,751.23 crore.

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 78.11. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 41.01 against a price-to-book (P/B) value of 8.65. Earnings per share (EPS) stood at 155.90 with a return on equity (RoE) of 21.10.

As of June 2024, promoters held a 72.58 per cent stake in the company.