KK Modi Group stock surges 10% today, zooms 118% in 5 months. Do you own?

Business Standard

2 days ago

Shares of Godfrey Philips India hit a new high of ₹9,452.70, surging 10 per cent on the BSE in Friday's intra-day trade amid heavy volumes on the expectation of healthy earnings.
The stock price of KK Modi Group Company has surpassed its previous high of ₹9,256.55 touched on May 15, 2025. The market price of the fast-moving consumer goods (FMCG) company is trading higher for the fourth straight day, rallying 18 per cent during the period.
In the past five months, Godfrey Philips India has seen its market price zoom 118 per cent from a level of ₹4,333.65 on January 27, 2025. Further, in the past three months, it skyrocketed 800 per cent from ₹1,050 on the BSE.
What's driving Godfrey Philips India shares' rally?
Godfrey Philips India has continued its growth momentum from the financial year 2024 25 (FY24-25). The company has recorded consolidated gross sales value of ₹14,480 crore and net profit of ₹1,153 crore (from continuing operations) in FY25, representing an increase of 24 per cent as compared to the corresponding period in the last year.
Godfrey Phillips has delivered robust cigarette domestic volume growth in FY25. The company's topline is supported by unmanufactured tobacco export of ₹2,010 crore in FY25, which continues to show an upward trend.
The management in the FY25 investor presentation said the company plans to enter new markets with new offerings that are underway, and continues to focus on improving productivity and profitability.
Godfrey Phillips has strengthened its partnership with Philip Morris International in the manufacture and distribution of the Marlboro brand cigarettes in India.
The company's portfolio comprises established cigarette brands such as Four Square, Red & White, Stellar, and Cavenders; the company also manufactures and distributes the Marlboro brand of cigarettes, which enjoys strong customer loyalty and has been a significant revenue driver. Cigarette volume growth momentum is expected to sustain with the government not increasing taxes on cigarettes, according to analysts.
Godfrey Phillips' operations are concentrated in northern and western India, which contribute to more than 90 per cent of its cigarette sales. Further, the company is a distant second in the Indian tobacco industry, accounting for around 14 per cent of volume share and faces intense competition from the dominant player -- ITC Ltd, Crisil Ratings said.
Sector outlook
The domestic cigarettes industry in the past was affected by a sustained rise in taxes and regulatory regime, along with a sharp hike in illegal trade in the past few years, especially at the premium end, which continues to pose significant challenges to the legal cigarettes industry.
However, in recent times, the government has undertaken stringent actions to curb illicit cigarette sales. This, along with lower price hikes in the cigarette portfolio, will help cigarette companies post better volume growth, according to Mirae Asset Sharekhan.
About Godfrey Phillips
Godfrey Phillips is an associate of the KK Modi group of companies and Philip Morris Global Brands Inc. (Philip Morris; a subsidiary of Altria Group Inc). The KK Modi group owns 47.48 per cent equity shares of the company, and Philip Morris owns 25.1 per cent. GPIL primarily manufactures cigarettes. It has diversified into segments such as confectionery and retail. It has retail stores, named 24SEVEN (TFS), in the National Capital Region, Hyderabad and Chandigarh from which it has announced to exit in May 2024.