Multibagger cigarette stock hits fresh record high, surges 136% in 6 months; is more steam left?

A well-known cigarette stock has turned multibagger, soaring over 136 per cent in the past six months to hit a fresh record high on the BSE. The stock in focus is none other than Godfrey Phillips India Ltd, which manufactures and distributes Marlboro-branded cigarettes under a licensing agreement with US-based Philip Morris International.

Continuing its upward momentum for the third straight session, the stock hit a new high of Rs 10,867.50 on Wednesday. It was last seen trading 9.99 per cent higher at Rs 10,861. At this level, the scrip has jumped 136.14 per cent over a six-month period.

The recent rally comes on the back of strong June 2025 quarter (Q1 FY26) results, with the company reporting a 56 per cent year-on-year (YoY) rise in consolidated net profit for the quarter ended June 2025, along with the announcement of a 2:1 bonus share issue.

The cigarette maker said its consolidated net profit rose to Rs 356.28 crore in Q1 FY26, up from Rs 228.55 crore in the same quarter last year, driven by higher sales during the period.

Godfrey Phillips has set September 16 as the record date to determine which shareholders are eligible for bonus shares. Additionally, the company has approved an increase in authorised share capital from Rs 25 crore to Rs 50 crore.

Technically, one analyst believes there could be more upside left in the counter, while another recommends a ‘Buy-on-Dip’ approach at current levels.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher (PL), said, "The stock has been witnessing a gradual rise in recent times. The overall bias has strengthened, indicating the potential for a fresh upward move with targets of Rs 12,400 and Rs 13,500 in the coming days. The Rs 8,700 level remains a crucial near-term support zone that must hold to keep the overall trend intact."

Ravi Singh, Senior Vice-President of Retail Research at Religare Broking, recommended a 'Buy-on-Dip' strategy for this stock after the sharp upside.

As of June 2025, promoters held a 72.58 per cent stake in the cigarette maker.