Godfrey Phillips zooms 12%, recoups YTD losses; analyst sees more upside

With today's sharp gain of 12 per cent, Godfrey Phillips shares have now recouped the YTD losses

Godfrey Phillips share price today: Shares of cigarette maker Godfrey Phillips extended the gains to a second straight session today, zooming 12 per cent intraday, after reports said that the company has hiked prices of its products to offset the impact of recent excise duty hike.

Godfrey Phillips shares opened nearly 1 per cent higher at ₹2,083.70 on the National Stock Exchange (NSE) as against the previous close of ₹2,065.80. However, as a strong buying interest emerged in the counter, the stock hit an intraday high of ₹2,314.30, up 12.03 per cent.

At the time of writing this report around noon, the counter traded firmly in the green to quote near the day's high at ₹2,301.

Today's trading activity also saw a sharp uptick in the volume with 4.4 million equities changing hands on the NSE compared with the previous session's total traded quantity of 1.4 million.  CHECK Stock Market LIVE Updates

With today's sharp gain, Godfrey Phillips shares have now recouped their year-to-date (Y-T-D) losses. The stock has rallied more than 15 per cent over the past two trading sessions.  The stock has underperformed the markets in one year but outperformed significantly in the long-term. It has zoomed 175 per cent in two years and 300 per cent in three years, according to exchange data. From its 52-week high of ₹3,945, touched on September 16, 2025, the counter is still down 41 per cent.

Godfrey Phillips stock: Analyst strategy 

Sachin Gupta, VP – Research, Choice Broking, said that the company’s decision to hike prices has triggered a strong breakout from a month-long consolidation range between ₹1,650 and ₹1,800, where the stock had been trading since the initial announcement of excise duty. He said that today’s price action marks an important structural recovery as it was supported by exceptionally high trading volumes, more than twice the average volume of the past 20 days, indicating heavy buying interest and significant short covering.

"By breaching the ₹2,243 level, the stock has decisively moved above its 50-day EMA, shifting the short-term trend from negative to positive, he said. Godfrey Phillips' medium-term trend still faces resistance from the 100-day EMA and the 50-week EMA, both positioned near ₹2,592," the analyst said.

From trading perspective, Sachin said that traders may consider fresh entries in the range of ₹2,230 to ₹2,250 zone, with upside targets of ₹2,590 and ₹2,700. A strict stop-loss should be maintained below ₹1,980. 

Excise duty on cigarettes

Godfrey Phillips and other tobacco products makers came under pressure following the government's imposition of an additional excise on cigarettes and other tobacco products, effective February 1, 2026.  The Finance Ministry had notified amendments to the Central Excise Act imposing an excise duty ranging from ₹2,050 to ₹8,500 per 1,000 sticks based on cigarette length, effective February 1. This duty was over and above 40 per cent GST. The ministry had also notified the Health and National Security Cess Act, levying cess on the manufacturing capacity of pan masala-related businesses.

Godfrey Phillips is the second largest cigarette maker in the country. It owns popular brands like Four Square, Red and White, Cavanders, Tipper and North Pole. It also manufactures and distributes the brand Marlboro under a license agreement with Philip Morris.

In the third quarter, the cigarette had reported an 8.7 per cent Y-o-Y rise in its consolidated net profit to ₹343.29 crore while its revenue from operations grew by 15.68 per cent Y-o-Y to ₹2,189.93 crore.