Godfrey Phillips India Ltd. (GODFRYPHLP) AI Stock Analysis

• Market Cap: ₹318.78B
• Dividend Yield: 1.29%
• Average Volume (3M): 71.91K
• Price to Earnings (P/E): 31.4
• Beta (1Y): 1.50
• Revenue Growth: 24.53%
• EPS Growth: 39.08%
• Country: IN
• Employees: 1,123
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Tobacco
• EPS (TTM): 22.01
• Shares Outstanding: 155,981,770
• 10 Day Avg. Volume: 26,470
• 30 Day Avg. Volume: 71,908
• PEG Ratio: 1.38
• Price to Book (P/B): 7.02
• Price to Sales (P/S): 6.57
• P/FCF Ratio: -608.99
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹2,728.00 ▲(21.21% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is primarily supported by strong financial performance (notably revenue and profitability strength and a solid balance sheet). This is tempered by weaker technical positioning versus key longer-term moving averages and a negative MACD, plus only moderate valuation support from a mid-range P/E and modest dividend yield.

Positive Factors

Strong revenue growth

A >20% reported revenue growth indicates durable top-line momentum driven by core cigarette sales and mix. Over 2-6 months this supports reinvestment, scale economies and sustained margin conversion, underpinning predictable earnings if regulatory settings remain stable.

Solid balance sheet & ROE

A solid balance sheet with manageable leverage and strong ROE provides financial flexibility to fund working capital, capex or opportunistic investments without immediate refinancing stress. This enhances resilience to shocks and supports long-term capital allocation decisions.

Contract manufacturing revenue stream

Contract manufacturing for third parties diversifies revenue beyond owned brands, smoothing utilization and offering stable fee-based income. Structural manufacturing partnerships reduce dependence on brand marketing, improving capacity utilization and supporting margin stability over time.

Negative Factors

Decline in free cash flow

A recent drop in free cash flow, despite positive operating cash flow, weakens the company's ability to return capital or fund growth without tapping reserves or taking debt. Persistently lower FCF can constrain dividends, capex or deleveraging plans over the medium term.

High regulatory and tax sensitivity

The business is structurally exposed to excise, GST and packaging/health-warning rules that can change policy-driven pricing and demand. Such regulatory shifts are durable risks that can materially alter affordability, volumes and profitability for tobacco players over multi-month horizons.

Concentration & input-cost volatility

Heavy revenue concentration in cigarettes leaves the company vulnerable to demand shifts or policy actions. Coupled with volatility in tobacco, paper and packaging costs, this concentration can compress margins and earnings visibility, pressuring profitability sustainability if costs rise.

Godfrey Phillips India Ltd. Business Overview & Revenue Model

Company Description

Godfrey Phillips India Limited manufactures and sells cigarettes, chewing products, and tobacco products primarily in India. It operates through Cigarette, Tobacco, and Related Products; Retail and Related products; and Others segments. The company also manufactures cut tobacco; and trades in and distributes tobacco and other retail products, and vaping devices. Godfrey Phillips India Limited sells its cigarette products under the Four Square, Red and White, Cavanders, Stellar, North Pole and Tipper, and Marlboro brands; pan masala under the Pan Vilas and RAAG brands; mouth freshener under the Pan Vilas Silver Dewz brand; and candies under the Funda Goli brand name. In addition, the company operates convenience stores under the 24SEVEN name. Further, it is also involved in the real estate business. The company also exports its products. Godfrey Phillips India Limited was incorporated in 1936 and is based in New Delhi, India.

How the Company Makes Money

Godfrey Phillips India Ltd. generates revenue mainly through the sale of its tobacco products, which include various cigarette brands and other tobacco items. The company employs a multi-channel distribution strategy, leveraging both traditional retail outlets and modern trade formats to reach a broad customer base. Its revenue model is primarily driven by product sales, with significant contributions from established brands that enjoy strong customer loyalty. Additionally, the company benefits from strategic partnerships with distributors and suppliers, enhancing its supply chain efficiency and market reach. The evolving regulatory landscape in India, along with consumer preferences, also plays a role in shaping its revenue generation strategies.

Godfrey Phillips India Ltd. Financial Statement Overview

Summary

Strong income statement performance (Score 85) driven by significant revenue growth and healthy profitability (robust gross margin and strong EBIT/EBITDA margins). Balance sheet is solid (Score 78) with manageable leverage and strong ROE. Cash flow is the main offset (Score 70) due to a recent decline in free cash flow despite positive operating cash flow.

Income Statement

Godfrey Phillips India Ltd. demonstrates strong revenue growth, with a significant increase from 2024 to 2025. The gross profit margin is robust, and the net profit margin shows healthy profitability. The EBIT and EBITDA margins are strong, indicating efficient operational performance.

Balance Sheet

The company's balance sheet is solid, with a manageable debt-to-equity ratio and a strong equity ratio, indicating financial stability. The return on equity is impressive, reflecting effective use of shareholder funds to generate profits.

Cash Flow

The cash flow statement reveals a decrease in free cash flow in the latest period, which could be a concern. However, operating cash flow remains positive relative to net income, suggesting adequate cash generation from operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	60.35B	56.11B	40.18B	35.62B	26.88B	25.25B
Gross Profit	24.83B	23.10B	18.02B	17.25B	14.10B	12.57B
EBITDA	12.41B	11.58B	8.91B	7.62B	5.82B	4.93B
Net Income	12.00B	10.72B	8.83B	6.90B	4.38B	3.77B
Balance Sheet
Total Assets	0.00	69.69B	58.43B	49.68B	41.02B	37.32B
Cash, Cash Equivalents and Short-Term Investments	2.09B	2.09B	1.70B	1.91B	5.03B	5.08B
Total Debt	0.00	1.79B	3.45B	3.55B	3.36B	3.96B
Total Liabilities	-52.52B	17.17B	16.05B	14.15B	11.69B	11.44B
Stockholders Equity	52.52B	52.46B	42.32B	35.48B	29.28B	25.82B
Cash Flow
Free Cash Flow	0.00	-605.00M	1.90B	6.49B	3.95B	1.78B
Operating Cash Flow	0.00	1.07B	2.90B	7.36B	4.79B	3.10B
Investing Cash Flow	0.00	4.02B	554.47M	-5.41B	-2.34B	-2.98B
Financing Cash Flow	0.00	-4.91B	-3.49B	-2.06B	-2.38B	-159.45M

Godfrey Phillips India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2250.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GODFRYPHLP, the sentiment is Negative. The current price of 2250.65 is above the 20-day moving average (MA) of 2160.33, above the 50-day MA of 2244.87, and below the 200-day MA of 2860.13, indicating a bearish trend. The MACD of -36.10 indicates Positive momentum. The RSI at 40.54 is Neutral, neither overbought nor oversold. The STOCH value of 12.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GODFRYPHLP.

Godfrey Phillips India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITC	79 Outperform	₹3.94T	25.57	―	3.52%	4.55%	70.17%
GODFRYPHLP	69 Neutral	₹318.78B	31.38	―	1.29%	24.53%	39.08%
VSTIND	69 Neutral	₹37.96B	18.16	―	3.93%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Godfrey Phillips India Ltd. Corporate Events

Exchange Seeks Clarification from Godfrey Phillips India After Surge in Trading Volumes

The stock of Godfrey Phillips India Ltd. has seen a significant surge in trading volume, prompting the stock exchange to seek clarification from the company to ensure that investors have access to the most current and relevant information. The exchange has formally written to the company and is awaiting its response, underscoring heightened regulatory vigilance and signaling to market participants that any unexplained market activity is being closely monitored in the interest of investor protection.