GODFRYPHLP

– Technical Report

Buy: Current levels | Target 1: 13,000 | Target 2: 14,500 | Stop Loss: 9,650 Rationale: Godfrey Phillips is showing strong resilience and bullish momentum despite GST 2.0 imposing a 40% tax on tobacco. Technically, the stock is in a consistent uptrend, making higher highs and higher lows, and trading above the 200-day SMA, signaling long-term strength. The RSI is currently around 55, acting as a robust support zone, while price has closed above last week’s pivot and the highs of the previous two sessions. A breakout above 11,460 could open near-term targets of 13,000–14,500. Fundamentally, the stock is well-supported by strong financial performance. Q1 FY26 net profit jumped 56% YoY to ₹356 crore, with EPS of ₹68.5. Annual revenue for FY25 reached ₹5,611 crore with a net profit of ₹1,153 crore. The company has a high dividend payout ratio (37.4%) and has announced a 2:1 bonus issue, boosting shareholder value. Consistent earnings growth (CAGR ~24% over 5 years) and positive market sentiment, reflected in a 52-week high surge, further support the bullish case. Bullish Catalysts: Strong financials with rising revenue and profits. Bonus issue and dividend declaration enhance investor confidence. Positive market sentiment driving the stock to new highs. Risks: Regulatory changes in tobacco taxation. High valuation multiples (P/E ~58, P/B ~11) may limit upside. Market volatility could impact short-term performance. Disclosure: I, the author of this report, and my immediate family members have no financial interest or beneficial ownership in the securities mentioned herein at the time of publication. Disclaimer: Trading in the stock market involves risk, and past performance does not guarantee future results. This report is for informational purposes only and not investment advice. Please consult a financial advisor before acting. No liability is accepted for any loss arising from the use of this information.