Godfrey Phillips Share Price Surges 9% Over After 2:1 Bonus Issue

Godfrey Phillips Share Price Over 9% After Adjusting for 2:1 Bonus Issue

Tuesday mornings aren't usually known for fireworks on Dalal Street, but today, Godfrey Phillips shares delivered a proper wake-up call. After adjusting for its very first 2:1 bonus issue, the stock leapt over 9%, briefly touching an intraday high of ₹3,720 on the National Stock Exchange. Optimistic Outlook  (@optimistic_otl) reported on Twitter that Godfrey Phillips was among the top gainers, jumping +9% thanks to strong quarterly profit growth and rising investor interest.

This, for a tobacco company that’s long been steady and sometimes even a bit sleepy, is like the local uncle suddenly entering and winning a dance competition. The price jolt looked bigger than it was: what seemed like a single-session 66% crash was simply the result of bonus shares coming into play, a classic hiccup whenever a stock goes ex-bonus.

Some onlookers might’ve rubbed their eyes at the chart, so here’s the scoop: every shareholder who owned one share as of September 16 (that means today) now owns three, thanks to the 2:1 bonus. The price, naturally, split much like a bar of chocolate among cousins, but the thrill came from the fact that, even after such an adjustment, the stock basically sprinted out of the gates this morning. Not a bad way to flex right after a corporate action, especially considering this is Godfrey Phillips’ first-ever bonus issue, making it a bit like a debut party, and who doesn’t like free entry?

What Is a Bonus Issue?

Let’s keep this part nice and chatty. A bonus issue sounds fancy, but think of it as a party favor for loyal shareholders. Companies sometimes hand out additional shares, gratis, to everyone who already owns some, simply by converting their reserves into fresh new equity. It’s a kind of corporate thank-you card, except with real market value rather than just “best wishes.” For investors, two extra shares for every one held felt almost generous—like when your favorite sweet shop gives a “buy one, get two free” offer because the festival season is near.

The fun bit is: while your portfolio shows more shares, the overall pie remains the same size, the market capitalization doesn’t magically expand. In actual numbers, for Godfrey Phillips, that meant the paid-up share capital ballooned to over ₹3,119 lakh, with a total count of about 15.6 crore shares of ₹2 each after the bonus kicked in.

The bonus made the shares more affordable for smaller investors, increased liquidity, and let’s be honest, sparked a bit of excitement for all those who checked their demat accounts this morning expecting plain old vanilla, but instead found a scoop of something extra.

Godfrey Phillips Q1 Earnings

Godfrey Phillips delivered a sharp year-on-year net profit boost in the June quarter, jumping roughly 56% to ₹356 crore from ₹229 crore last year. Revenues? Up 33% to ₹1,486 crore, and operating earnings (EBITDA) also expanded by about 25%, hitting ₹338 crore. This kind of performance is nothing to sniff at. Companies would love results like these going into a festive quarter, or honestly, any quarter at all.

Of course, even strong runs have their wobbles. The company’s EBITDA margin dipped to 18.6% from last year’s 19.9%, which is a tad less punchy. Still, the top-line growth made up for a margin slip, and with the cigarettes, tobacco, and related products segment pulling in the lion’s share (₹1,781 crore), Godfrey's core business is very much alive and kicking. Their side hustles tobacco might be king, but tea and retail aren’t sleeping, also increased, though on a smaller basis.

Talk to any long-term Godfrey Phillips investor, and you might get a sheepish smile: the stock has nearly doubled so far this year, making the bonus a celebratory cherry on top. One friend even texted half-jokingly that their retirement plans now feature a literal smoke break.

Godfrey Phillips Share Price (16 Sept, 12:34 PM IST)

Here is the table for Godfrey Phillips' Share Price at 16 Sept, 12:34 PM IST