Godfrey Phillips shares hit 20% upper circuit level; here's what tech charts indicate

Godfrey Phillips India Ltd shares resumed their upward run on Friday after a single-day halt. The stock zoomed 20 per cent to hit an upper price band of Rs 5979.50. At this price, the multibagger scrip has rallied 138.76 per cent in a year.

Today's sharp stock upmove came after the cigarette maker announced strong third-quarter (Q3) results for the financial year 2024-25 (FY25). Net profit soared 48.7 per cent year-on-year (YoY) to Rs 315.9 crore in the December 2024 quarter from Rs 212.4 crore in the year-ago period.

Revenue (without excise duty) surged 27.3 per cent YoY to Rs 1,591.2 crore in Q3 FY25 as against Rs 1,249.6 crore in the corresponding period last fiscal. Earnings before interest, tax, depreciation and amortisation (Ebitda) climbed 57.6 per cent YoY to Rs 358.8 crore in Q3 FY25 from Rs 227.7 crore in Q3 FY24.

On technical setup, support on the counter could be seen at Rs 5,450 level. Rupak De, Senior Technical Analyst at LKP Securities, said, "The stock has given a falling channel breakout on daily charts, indicating growing optimism. Additionally, it is sustaining above a critical short-term moving average and has also broken out of a consolidation pattern. In the short term, the stock may move toward Rs 6,300. However, after a 20 per cent surge in a single session, a 'buy-on-dip' strategy would offer a favourable risk-reward ratio. Support on the lower end is placed at Rs 5,450."

The stock saw high trading volume on BSE today as around 1.40 lakh shares changed hands. The figure was more than the two-week average volume of 19,000 shares. Turnover on the counter came at Rs 80.01 crore, commanding a market capitalisation (m-cap) of Rs 31,089.76 crore.

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 64.16. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a price-to-equity (P/E) ratio of 31.70 against a price-to-book (P/B) value of 7.74. Earnings per share (EPS) stood at 188.65 with a return on equity (RoE) of 24.42.

As of December 2024, promoters held a 72.58 per cent stake in the cigarette maker.