Godfrey Phillips smokes up

Godfrey Phillips India was trading around 11% higher at about Rs 2,196 per share in mid-morning trade, after swinging between an intraday low of Rs 1,966.40 and a high of Rs 2,240.20. The stock was hovering close to its daily upper circuit band (UC limit: Rs 2,378.40) even as it continued to trade well below its 52-week peak of Rs 3,945, with the 52-week range currently at Rs 1,553.53 to 3,945.00.

The stock is up today mainly on a tobacco pack “relief rally” after the sharp sell-off earlier this week triggered by the new cigarette excise duty effective February 1, 2026. Market chatter has shifted from “tax shock” to “pricing power”, i.e., the view that larger organised players can pass through higher taxes via price hikes and protect profitability, bringing buyers back into the space.

The move is also being supported by the company’s Q3 FY26 earnings (reported Friday), where consolidated net profit rose 8.7% YoY to Rs 343.29 crore and revenue from operations increased 15.68% YoY to Rs 2,189.93 crore, reinforcing the underlying growth narrative even as costs were higher.

The rally has been sector-led, with ITC also seeing strong buying; pointing to value buying after the recent correction in cigarette stocks post-Budget/excise changes.