Godfrey Phillips India Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Godfrey Phillips India Ltd trades at ₹2,110, in a downtrend and 28 weeks into that stage. That is −10.1% against its own 200-day average. It sits at 12% of a 52-week range of ₹1,901 to ₹3,691. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (4 weeks and counting).

Today the stock is in a downtrend — week 28 of stage 4, confirmed. At ₹2,110 it trades −10.1% versus its 200-day average and sits at 12% of its 52-week range (₹1,901–₹3,691).

Against the market, two honest reads. Cumulative: over the last 10.3 years the stock moved +424% while the NIFTY 500 moved +274% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (4 weeks and counting; last ahead the week of 2026-06-25) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 46th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Godfrey Phillips India Ltd trades at 21.8× P/E, mid-range by its own standards (46th percentile). Its long-run median P/E is 24.0×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 21.8× is mid-range by its own standards (46th percentile), against a long-run median of 24.0× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +42.4% against a −32.3% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +43.4%/yr price move, ~+38.0%/yr came from earnings growth and ~+5.4 pp from the multiple (expanding); over 10y, of the +18.4%/yr price move, ~+24.6%/yr came from earnings growth and ~−6.2 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Godfrey Phillips India Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 32.4% and holding. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

72.9/100 — rank 1 of 3 in Cigarettes & Tobacco Products · 97% evidence confidence

Godfrey Phillips India Ltd scores 72.9 out of 100 against the 3 companies it is compared with in Cigarettes & Tobacco Products, ranking 1. Acceleration candidate, not a confirmed leader: earnings are strong but sector-relative strength is -8.1% and the one-year return is -32.3%. Do not upgrade until sector-relative strength is above zero and another reported period confirms growth.

The four contributions add to the total exactly: 32.8 + 20.9 + 13.2 + 6 = 72.9. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Godfrey Phillips India Ltd reported ₹1,787 Cr of revenue in the Mar 26 quarter, +13.6% year on year. That is the 2nd straight quarter of year-on-year growth. Over 10 years it has compounded at 10.6% a year. The last full year, FY26, came in at ₹6,391 Cr. The last four reported quarters add to ₹6,391 Cr.

Godfrey Phillips India Ltd reported ₹1,787 Cr of revenue in the Mar 26 quarter, +13.6% year on year. That is the 2nd straight quarter of year-on-year growth. Over 10 years it has compounded at 10.6% a year. The last full year, FY26, came in at ₹6,391 Cr. The last four reported quarters add to ₹6,391 Cr.

FY26 revenue came in at ₹6,391 Cr (+13.9% on the year), capping 10 years at 10.6% compound. The latest quarter (Mar 26) printed ₹1,787 Cr, +13.6% year on year — the 2nd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +15.0% growth against the decade's 10.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +13.9% over the last 4 quarters against +21.5%/yr over the last 8 — rolling over; TTM profit +42.1% vs +31.4%/yr — accelerating.

→ Revenue grew — did margins hold as it scaled? Next: 31.0% this quarter (+14.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Godfrey Phillips India Ltd's operating margin is 31.0% in the Mar 26 quarter, +14.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 11.0% to 25.0%. The current quarter is running above every full year in that window.

Godfrey Phillips India Ltd's operating margin is 31.0% in the Mar 26 quarter, +14.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 11.0% to 25.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 31.0%, +14.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 11.0%–25.0%, and FY26's 25.0% is the top of that band — a record year.

Why the margin moved: operating margin went +13.8 pp year on year while gross margin went +10.2 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

→ Margins held — did that reach the bottom line? Next: profit +86.1% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Godfrey Phillips India Ltd earned ₹521 Cr of net profit in the Mar 26 quarter, +86.1% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹1,526 Cr. The 10-year compound rate is 24.5%. That is 29.2% of the quarter's revenue. The same quarter a year earlier earned ₹280 Cr.

Godfrey Phillips India Ltd earned ₹521 Cr of net profit in the Mar 26 quarter, +86.1% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹1,526 Cr. The 10-year compound rate is 24.5%. That is 29.2% of the quarter's revenue. The same quarter a year earlier earned ₹280 Cr.

Mar 26 profit was ₹521 Cr, +86.1% year on year — the 7th consecutive quarter of growth. On the full year, FY26 printed ₹1,526 Cr (+42.4%), and the 10-year compound rate is 24.5%.

Why profit moved: revenue contributed +13.6% and the margin +14.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +43.3% vs revenue +15.0%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 26% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 26% of Godfrey Phillips India Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹518 Cr of operating cash against ₹1,526 Cr of profit. After ₹346 Cr of capital spending, ₹172 Cr was left as free cash.

FY26: operating cash of ₹518 Cr against reported profit of ₹1,526 Cr, leaving free cash of ₹172 Cr after ₹346 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 26% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 26%: the cash cycle stretched 60 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: conversion is below par and the cash cycle has stretched 60 days — the next section's job is to find where the cash is stuck.

→ So follow the cash to where it goes. Next: the 230-day cycle, in money terms.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Godfrey Phillips India Ltd's cash conversion cycle runs 230 days in FY26, up from 170 days in FY21. Capital spending ran ₹379 Cr over the last 3 years. At FY26 sales of ₹6,391 Cr each day of that cycle holds about ₹17.5 Cr, so roughly ₹4,027 Cr sits inside the business at any moment.

FY26: debtors at 52 days, inventory at 233 days — roughly 7.7 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 230 days, looser than FY21's 170.

The full loop: cash goes out to suppliers and production on day 0; stock waits 233 days to sell; customers pay about 52 days after that; and suppliers themselves are paid at 55 days — netting out to the 230-day cycle.

In money terms: at FY26 sales of ₹6,391 Cr, each day of the cycle holds about ₹17.5 Cr — so the 230-day loop keeps roughly ₹4,027 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹379 Cr over the last 3 fiscal years against ₹353 Cr of depreciation — building somewhat ahead of wear-and-tear. Capital work-in-progress stands at ₹168 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 33% and the ROIC − WACC spread is +5.4 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Godfrey Phillips India Ltd earns a ROCE of 33% in FY26. That is up from a trough of 10% in FY18. Return on invested capital clears the cost of that capital by +5.4 percentage points, so growth here adds value rather than only size. The wiring behind it is 23.9% net margin on 0.77× asset turns.

FY26 ROCE is 33%, recovered from a FY18 trough of 10% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 23.9% net margin × 0.77× asset turns × 1.34× balance-sheet leverage ≈ 24.7% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 17.4% − 12.0% = a +5.4 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.04.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Godfrey Phillips India Ltd carries total debt of ₹234 Cr against shareholder equity of ₹6,219 Cr as of Mar 26, a debt-to-equity of 0.04 — effectively unlevered. On the annual view that ratio went from 0.11 in FY22 to 0.04 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹234 Cr against shareholder equity of ₹6,219 Cr — a debt-to-equity of 0.04. On the annual view, debt-to-equity went from 0.11 (FY22) to 0.04 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Foreign institutions cut 3.0 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 3.0 points of Godfrey Phillips India Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 7.8% of the company. Domestic institutions moved +1.8 points over the same window, to 3.7%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −3.0 points over 8 quarters to 7.8%; Domestic institutions: +1.8 points over 8 quarters to 3.7%; Promoters: +0.0 points over 8 quarters to 72.6%.

Why the register moved: rotation — foreign institutions −3.0 points against domestic institutions +1.8 points over 8 quarters, with promoters holding steady — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Godfrey Phillips India Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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