Godfrey Phillips shares zoom 11% after board to mull on 2:1 bonus issue
Godfrey Phillips share price today surged up 11 per cent at Rs 6,779 per share on the BSE in Friday's intraday deals
 "Godfrey Phillips shares zoom 11% after board to mull on 2:1 bonus issue")
Godfrey Phillips share price today surged up 11 per cent, hitting their all time high at Rs 6,779 per share on the BSE in Friday’s intraday deals. This came after Godfrey Phillips announced that its board of directors have approved a bonus shares issue.
At 02:39 PM; the share price of the company was trading 9.88 per cent higher at Rs 7,024.85. By comparison, the BSE Sensex was trading 1.25 per cent or 1031 points lower at 81,169 levels.
“We wish to inform you that a meeting of the Board of Directors is scheduled for Friday, September 20, 2024, to consider and recommend to shareholders the issuance of bonus shares in a 2:1 ratio. This would involve issuing two new fully paid-up equity shares of Rs 2 each for every one existing fully paid-up equity share of Rs 2 each, through the capitalization of reserves,” the company said in an exchange filing on Friday.
Headquartered in Mumbai, Godfrey Phillips India is involved primarily in the manufacturing and marketing of tobacco products, including cigarettes and smokeless tobacco. Established in 1956, the company operates under various brand names and has a significant presence in the Indian market.
Godfrey Phillips India’s cigarette brands include Four Square, Red & White, Cavanders, Stellar, Focus, Originals International, and others. The company also manufactures and distributes the global cigarette brand Marlboro in India under an arrangement with Philip Morris.
The company reported a 10.17 per cent decline in its consolidated net profit, falling to Rs 228.55 crore for the first quarter ending June 2024, compared to Rs 254.44 crore in the same period last year.
Revenue from operations increased by 15.7 per cent to Rs 1,440.81 crore, up from Rs 1,245.39 crore in the previous fiscal year. Total expenses for the June quarter rose by 17.41 per cent to Rs 1,216.52 crore.
The company has a total market capitalisation of Rs 35,875.80 crore. Its shares are trading at a price to earnings multiple of 41 times with an earning per share of Rs 155.90 per share.