Godfrey Phillips stock rises 41% in two days, here's what analysts say 

Shares of cigarette maker Godfrey Phillips India have risen 41% in the last two sessions. The multibagger stock has been rallying since the firm reported its Q3 earnings on February 13. 

In the current session, Godfrey Phillips India shares ended 17.76% higher at Rs 7041.62 against the previous close of Rs 5,979.50 on BSE. Market cap of the firm rose to Rs 36,612 crore. The stock was among the top gainers on BSE. It has risen 301% in two years and gained 561% in three years. 

Total 1.03lakh shares of the firm changed hands amounting to a turnover of Rs 68.21 crore. 

The stock touched its 52-week low of Rs 2506.15 on February 19, 2024 and scaled a 52 week high of Rs 8480 on September 16, 2024.

Mandar Bhojane, Equity Research Analyst at Choice Broking said, "Over the past 12 months, the stock has more than doubled in value.  From a technical perspective, Exponential Moving Averages (EMAs) indicate a strong uptrend, with the stock trading above its 20-day, 50-day, and 200-day EMAs. The price has also taken solid support from short-term EMAs, reinforcing the bullish outlook. If GODFRYPHLP successfully breaks the next resistance level at Rs 6,950, it could achieve a short-term target of Rs 7,200. On the downside, immediate support is positioned at Rs 6,700." 

"To mitigate risk, traders may consider placing a stop-loss at Rs 6,650 to safeguard against potential market reversals. In conclusion, given the technical indicators and prevailing market conditions, GODFRYPHLP presents a promising buying opportunity with a potential target of Rs 7,200, provided that appropriate risk management strategies are followed, " said Bhojane. 

A R Ramachandran, SEBI registered Independent analyst said, "Godfrey Phillips stock price is bullish but also overbought on the Daily charts with next resistance at Rs 8,230. Investors should book profits as trend will turn bearish if Daily close is below support of Rs 6270."

Net profit rose 48.7% year-on-year (YoY) to Rs 315.9 crore in Q3 against Rs 212.4 crore in the corresponding quarter of the previous fiscal. Revenue rose 27.3% to Rs 1,591.2 crore in Q3 against Rs 1,249.6 crore in the corresponding period of the preceding fiscal.

Godfrey Phillips stock has a one-year beta of 1, indicating average volatility during the period.    

In terms of technicals, the relative strength index (RSI) of the stock stands at 64.7, signaling it's trading neither in the oversold nor in the overbought zone.

EBITDA climbed 57.6% to Rs 358.8 crore in Q3 over Rs 227.7 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 22.6% in Q3 as compared to 18.2% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.

Godfrey Phillips manufactures cigarette brands, including Four Square, Red and White, Cavanders, Tipper and North Pole. It also manufactures and distributes Marlboro under a license agreement with Philip Morris.