Godfrey Phillips India shares snapped a six-session winning streak on Thursday, slipping as much as 1.5% to an intraday low of ₹2,290 as investors booked profits after the recent rally. The stock was trading 1.33% lower at ₹2,294 at 10:25 am, while the BSE Sensex was up 0.16% at 78,708. The decline comes after the stock surged 14.6% over the previous six trading sessions, leading some investors to lock in gains. As per Master Capital Services, Ravi Singh, Chief Research Officer, noted that "After a six-day rally, some profit booking is natural. The stock remains in an overall positive trend, with ₹2,150 acting as a key support level. As long as it holds above that level, the broader outlook remains constructive."
Godfrey Phillips reported a challenging June-quarter performance with consolidated net profit falling 44.3% year-on-year to ₹198 crore, while revenue declined 19% to ₹1,206 crore, as reported by The Economic Times. EBITDA dropped 46.2% to ₹182 crore, and the EBITDA margin contracted sharply to 15.1% from 22.7% year earlier. The weak quarterly results were primarily attributed to calibrated price hikes and portfolio interventions rather than weak demand, according to Jefferies. Despite the weak quarterly performance, the company's core cigarette business showed resilience with demand remaining stable despite price hikes, indicating the underlying business fundamentals remain intact.
Godfrey Phillips India shares rose more than 3% on Tuesday following reports that Samir Modi has withdrawn all legal cases against his mother, Bina Modi, raising hopes of a settlement in the long-running family dispute. The stock climbed as much as 7.2% to ₹2,410 per share on the NSE during early trade, though it later pared some gains amid profit booking and was trading at ₹2,317.10, up 3.12%, at around 12 pm. As per The Economic Times, Samir Modi confirmed he has withdrawn all the cases, stating "I have withdrawn all the cases. I don't want to fight." The feud within the Modi family had been brewing since the death of patriarch K.K. Modi in November 2019, with brothers Samir Modi and former IPL commissioner Lalit Modi challenging Bina Modi's leadership of the family trust that holds controlling interest in Godfrey Phillips India. Investors viewed the development as a positive signal, as a settlement of the family dispute could reduce uncertainty around the group's businesses, improving investor confidence.
The Modi Enterprises group has business interests in tobacco, fertilisers, network marketing and cosmetics, with its listed flagship Godfrey Phillips India having a market capitalisation of nearly ₹35,000 crore and manufacturing and distributing Marlboro cigarettes in India. The stock currently trades below its 52-week peak of ₹3,945 but remains comfortably above the 52-week low of ₹1,832. The pullback follows a weak set of June-quarter earnings, with the company facing pressure on profitability despite stable demand in its core cigarette business. The prospect of a truce provides significant relief by removing a lingering corporate governance overhang, as a peaceful compromise eliminates concerns surrounding protracted litigation, boardroom instability, or potential forced asset liquidations that had created uncertainty around the company's long-term management structure.
