Godfrey Philips shares zoom over 15% after strong Q1 results

economictimes.indiatimes.com:

Shares of cigarette maker Godfrey Phillips zoomed 15.4% to Rs 1,990 in Thursday's trade after the company reported an increase of 68.6% year-on-year (YoY) in its consolidated net profit to Rs 220.97 crore for the first quarter ended June 2023. It had posted a net profit of Rs 131.05 crore during the same quarter of the previous fiscal. Its revenue from operations was up 26.84% to Rs 1,245.39 crore during the quarter under review as against Rs 981.83 crore in the corresponding period of the previous fiscal.

Meanwhile, its total expenses were at Rs 1,036.06 crore, up 25.5% YoY in the first quarter of FY 2023-24. The company's total income in the June quarter was Rs 1,298.08 crore, up 31.9% YoY. Godfrey Phillips' revenue from cigarettes, tobacco and related products was Rs 1,128.90 crore, up 28.7% YoY during the April-June period.

While revenue from retail and related products was Rs 112.95 crore, up 8.08%, as against Rs 104.50 crore in the first quarter of last fiscal. At 10.55 am, the scrip was trading 12% higher at Rs 1,932.65 on BSE. However, on a year-to-date basis, the stock has declined over 3%, while it has rallied over 74% in the last one year.

As per Trendlyne data, the average target price of the stock is Rs 2,150, which shows an upside potential of 11% from the current market prices. The consensus recommendation from two analysts for the stock is a 'Strong Buy'. The Relative Strength Index (RSI) is at 59.2.

RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is at -15.1, which is below its center line; this is a bearish indicator. According to the latest shareholding pattern available with the exchanges, 72.58% of the company's shareholding is with the