Godfrey Phillips share price jumps over 100% over the last year. Can this multibagger stock give more returns?

Godfrey Phillips’s share price ended with a loss of 3.57 per cent at ₹5,582.35 on Monday, February 24, on the BSE, thus extending the losing streak to the fifth consecutive session. In the last five sessions, the stock has declined nearly 21 per cent amid concerns about potential GST increases on tobacco products.

However, despite this significant loss, the stock surged 23 per cent in February amid a widespread market selloff and is set to end its four-month losing streak.

Shares of this key player in the domestic cigarette industry have doubled in investors’ money in the last year. Enduring market volatility, Godfrey Phillips shares have jumped 103 per cent over the last year. In a bigger timeframe of three and five years, the stock surged 449 per cent and 317 per cent, respectively. In the last ten years, the stock has skyrocketed by 1,025 per cent.

The stock touched its 52-week low of ₹2,686.70 on February 29 and a 52-week high of ₹8,480 on September 16 last year.

Godfrey Phillips India is a flagship company of Modi Enterprises, the KK Modi Group. It is known for its cigarette brands, including Four Square, Red & White, Cavanders, Stellar, Focus, Originals International, and others. Under an arrangement with Philip Morris, it also manufactures and distributes the global cigarette brand Marlboro in India.

Can this multibagger stock gain further?

Godfrey Phillips shares appear to be a long-term buy due to their healthy fundamentals. The company reported a nearly 49 per cent year-on-year growth in its December quarter (Q3FY25) consolidated net profit to ₹315.84 crore from ₹212.35 crore in the same quarter last year.

Consolidated revenue from operations in Q3FY25 increased 27 per cent to ₹1,895.52 crore from ₹1,487.54 crore, year-on-year.

Operating profit for the quarter under review jumped 73 per cent to ₹330.63 crore, while operating margin expanded to 17.44 per cent.

According to Sagar Shetty, a research analyst at StoxBox, the recent correction in the stock is an opportunity to buy due to its strong fundamentals.

“Given the company’s strong market position and robust financial outlook, we view the recent price correction as a valuable buying opportunity for investors,” said Shetty.

“Despite the immediate market reaction, we maintain a positive stance on the company’s fundamentals, demonstrating strong financial performance, efficient operations, and strategic diversification beyond its core tobacco business,” Shetty said.

Technical experts also appear positive about the stock.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, suggests buying the stock in the range of ₹5,200-5,300.

Patel pointed out that Godfrey Phillips India recently closed above the R1 pivot on the daily chart, signalling strength after reversing from a bullish bat pattern. This breakout indicates potential upside momentum.

“A buying opportunity exists in the ₹5,200-5,300 zone, near R1, which now acts as support. The bullish structure suggests a target of ₹6,500, while a stop loss at ₹4,650 on a daily closing basis helps manage risk. Traders can consider entering within the suggested range, as price action confirms a positive trend,” said Patel.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.