Godfrey Phillips’ Share Price Skyrockets 36% in Just Two Days After Booming Profits

Godfrey Phillips’ stock surged 36% in two days, driven by strong Q3 results, including a 48.7% increase in net profit to ₹315.9 crore. Revenue rose 27.3% to ₹1,591.2 crore, with EBITDA growing 57.6%. The company continues to dominate the tobacco market while expanding into tea, pan masala, and confectioneries.

Godfrey Phillips’ Share Price Skyrockets 36% in Just Two Days After Booming Profits

Godfrey Phillips India has seen an extraordinary rise in its stock price, surging more than 36% in just two consecutive trading sessions. On February 17, 2025, the stock saw a 13.67% increase, reaching an intraday high of ₹6,819.8 per share, following a 20% jump in the previous session. The strong rally in Godfrey Phillips’ shares comes after the company announced its robust financial results for the third quarter of FY25, showcasing significant year-on-year (YoY) growth in both revenue and profit. As of 10:45 AM on February 17, 2025, the stock was trading at ₹6,710.15, marking an 11.85% increase for the day.

Over the past month, the stock has gained a notable 52.68%, and over the last year, it has risen by an impressive 150%.

The company’s quarterly results were a major catalyst for this stock rally. For Q3 FY25, Godfrey Phillips reported a 48.7% rise in net profit, reaching ₹315.9 crore compared to ₹212.4 crore in Q3 FY24. This growth in profit was fueled by a significant increase in the company’s revenue, which rose 27.3% YoY to ₹1,591.2 crore from ₹1,249.6 crore in the same quarter last year. Additionally, the company’s earnings before interest, tax, depreciation, and amortization (EBITDA) surged by 57.6%, reaching ₹358.8 crore, compared to ₹227.7 crore in Q3 FY24. The company also saw an improvement in its EBITDA margin, which expanded to 22.6% from 18.2% in the previous year.

The strong results were driven primarily by the company’s dominant position in the tobacco sector. A major portion of its revenue came from the sale of cigarettes, tobacco, and related products, contributing ₹1,875.21 crore, or 98.86% of total revenue. The remaining 1.14% came from retail and related products, amounting to ₹21.54 crore. The company’s earnings per share (EPS) grew by 49.20% to ₹60.95 from ₹40.85 in the same quarter last year, further underlining the company’s strong financial performance.

Godfrey Phillips India’s market share in the domestic cigarette industry is substantial, standing at around 14%. The company has a broad market presence across India, with well-established cigarette brands such as Four Square, Red and White, and Cavanders. It also manufactures and distributes Marlboro cigarettes in India under a licensing agreement. Beyond its core tobacco business, Godfrey Phillips has diversified its product portfolio to include tea, pan masala, and confectioneries, appealing to a wider range of consumer preferences.

The company has a strong manufacturing and distribution network to support its operations. It runs several manufacturing facilities, including plants in Rabale (Navi Mumbai) and two units in Ghaziabad, near Delhi. Additionally, Godfrey Phillips has an R&D center in Mumbai and a food R&D center in Ghaziabad to support innovation in its product offerings. The company also has a tobacco-buying unit in Guntur, Andhra Pradesh, and an International Business Division that exports its cigarette brands, cut and blended tobacco, and tobacco leaf to various international markets.

Godfrey Phillips India’s growth trajectory appears to be strong, driven by its dominant position in the domestic tobacco market and its successful expansion into other product categories. The company’s strong quarterly performance, highlighted by impressive gains in both revenue and profit, reflects its ability to capitalize on consumer demand and continue expanding its market reach. As it maintains its market share in the cigarette industry and further diversifies its product portfolio, Godfrey Phillips is well-positioned to continue its growth in the coming years.

The recent surge in Godfrey Phillips‘ share price highlights the investor confidence in the company’s prospects, driven by its strong financial results, broad market presence, and continued efforts to expand its product offerings beyond tobacco.