Today, Godfrey Phillips shares went ex-bonus under a 2:1 bonus issue, meaning existing shareholders receive two bonus shares for every one held. Because of the bonus adjustment, the share price appeared to crash by about 66% in one session. That’s just a mechanical adjustment (price split due to bonus), not a loss of value.

After the adjustment, the stock actually jumped 9% intraday, to around Rs.3,720 on the BSE.

This bonus issue is the first ever for Godfrey Phillips and this has come on the back of strong fundamentals.

For Q1FY26, net profit rose 56% (YoY) at Rs.356 crore on a 36% rise in revenue at Rs.1486 crore.

The stock has already had a very strong run. The stock has shown more than 100% gain (YoY) in 2025. 65% rise in past six months. The market cap after the bonus issue stands Rs.57,401 crore; P/E ratio is at 161×, reflecting high investor expectations.

While the move doesn't change the value of its business overnight, it does reset some metrics and investor expectations. For those invested (or considering investment), key metrics to monitor will include forward profit growth, margin stability, how EPS adjusts post-bonus, and whether the stock can sustain its ambitious P/E multiples.