1:5 Split, Rs 91 Dividends: Tobacco Stock Fell 15% In 3 Day On GST Hike Reports On Cigarettes; Time To Buy?

Godfrey Phillips Share Price: Cigarettes and tobacco products maker, Godfrey Phillips share price nosedived by 10% on February 20, after reports stated that government may hike GST rates on tobacco which could push prices of cigarettes up. Notably, Godfrey Phillips share price has been under pressure for three consecutive sessions. The stock has nosedived by more than 15% in 3 days. Is there buy-on-dips opportunity?

Godfrey Phillips Share Price:

After market hours of February 20th, Godfrey share price closed at Rs 5968.55 apiece on BSE, down by 9.02% with market cap of Rs 31,032.83 crore. During the trading session of Thursday, the stock had plunged as much as 10% by hitting an intraday low of Rs 5905.00 apiece.

Godfrey shares were down by 4.2% and 2.8% on February 19 and February 18. Cumulatively, the stock tumbled by 15.4% in these three sessions.

As of February 20, Godfrey Phillips stock has price-to-equity ratio of 31.64x, while its return on equity is at 24.42%.

It also needs to be noted that Godfrey shares have still performed better on weekly. monthly, half-yearly, YTD, and year-on-year basis despite the latest bearish trend. Godfrey's weekly performance is up by 12%, while in a month, the stock zoomed by 39.5%, and six-monthly performance is up by 5%. So far in 2025 (YTD), Godfrey shares have gained nearly 19%. Meanwhile, in a year, the stock rallied by over 126% on BSE, making it a multi-bagger.

Why Godfrey Phillips Share Price fall?

The midcap stock took a bearish hit after reports stated that the government may raise GST rates on cigarettes and tobacco products by double-digit. Godfrey along with other tobacco stocks also plunged.

As per the Economic Times, India is considering raising the GST on cigarettes and tobacco products to 40% and adding excise duty after the compensation cess ends in 2026. Currently, these products face a 28% GST plus other levies totalling 53%, below WHO's recommended 75%. The GST Council will decide on the recommendations.

Godfrey Phillips Recommendation:

As per Trendlyne data, the consensus recommendation of analysts on Godfrey Phillips is SELL. The 1-year average target price is set at Rs 5,340, which signalled over 10% potential downside ahead compared to the current price.

Godfrey has carried stock splits and dividend payouts. However, last year, the company had to halt its plan of bonus issues in the ratio of 2:1.

Meanwhile, Godfrey shares were split once in the ratio of 1:5 in November 2014, where the face value of Rs 10 was split to Rs 2 per share. As per Trendlyne data, Godfrey has rewarded investors with 23 dividends since September 2003. In the last 12 months, the company paid about Rs 91 dividend per share. Its current dividend yield is at 1.53%.

About Godfrey Phillips:

Godfrey Phillips India Limited, a flagship company of Modi Enterprises - KK Modi Group, is one of the largest FMCG companies in India. Our commitment to quality is unwavering and defines who we are. The company takes pride in its iconic cigarette brands, including Four Square, Red & White, Cavanders, Stellar, Focus, Originals International and others. Also, the company manufactures and distributes the global cigarette brand, Marlboro, in India under an arrangement with Philip Morris. Along with a strong cigarette and tobacco portfolio, the company also has a strong confectionery portfolio with Funda and has unique offerings for international markets.