Godfrey Phillips Shares: Dividend Boost Offsets Tax Headwinds, SEBI Analyst Identifies This Level As A Breakout Zone

Godfrey Phillips India, one of the country's largest tobacco makers, continues to hold firm on its technical charts, even as higher GST rates weigh on the industry. 

At the time of writing, however, the shares were down over 3% on Monday. 

SEBI-registered analyst Pradeep Carpenter highlighted chart levels, earnings growth, and recent corporate actions shaping the stock's outlook.

Technical Structure And Key Levels

Pradeep Carpenter noted that the stock remains in a long-term uptrend, making higher highs and higher lows. He identified ₹11,460 as a breakout zone for momentum continuation, with support at ₹9,650. 

Upside projections include ₹13,000 as the first resistance and ₹14,500 as the next resistance cluster.

Despite GST 2.0 imposing a 40% tax on tobacco products, Carpenter said the stock has held above its 200-day simple moving average, with relative strength index (RSI) near 55. 

The price has also closed above last week's pivot and recent highs, which he cited as bullish continuation signals.

Fundamental Highlights

Godfrey Phillips India, among the country's biggest tobacco makers, also runs businesses spanning cigarettes, chewing tobacco, retail distribution, packaged consumer goods and exports.

In the first quarter, the company posted a net profit of ₹356 crore, marking a 56% jump from a year earlier. Earnings per share came in at ₹68.5. For the full FY25, revenue reached ₹5,611 crore and net profit stood at ₹1,153 crore. 

The dividend payout ratio was 37.4%, alongside a 2:1 bonus issue announcement. Over the past five years, earnings have compounded at about 24%.

Catalysts And Risks

Carpenter pointed to rising revenue, profit growth, bonus and dividend payouts, and market momentum as bullish factors. 

Risks include regulatory exposure from tobacco taxation, premium valuations with a P/E near 58 and P/B around 11, and market volatility.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'bearish' amid 'normal' message volume.

Godfrey Phillips' stock has more than doubled so far in 2025.

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