Cigarette shares in focus; Godfrey Phillips surges 20%

Cigarette stocks led by Godfrey Phillips India were in focus today gaining up to 20% on the BSE in intra-day trade on back of heavy volumes.

Besides Godfrey Phillips India, ITC, VST Industries and Golden Tobacco were up between 3% to 11% on the BSE. At 02:51 pm; the S&P BSE Sensex was up 1.2% or 309 points at 26,114.


Godfrey Phillips India has surged 20% to Rs 999 on the BSE on back of heavy volumes. A combined 978,161 shares changed hands on the counter so far and there were pending buy orders for 25,442 shares on the BSE and NSE.

Except, VST Industries, the remaining three stock had underperformed the market by falling more than 10% after the recent demonetisation of high value currency notes. Since November 8, the benchmark index was down 6.5% till Monday.

Karvy Stock Broking recommended ‘buy’ rating on the stock with a target price of Rs 270 per share.

“ITC is expected to register double digit growth in the next 2 years, by strengthening its leadership position in cigarettes segment, higher growth in FMCG business and steady performance in non-FMCG segments. Higher disposable income in rural areas could result in consumers switching from lower end products like beedis and local made cigarettes to 64mm micro filter cigarettes,” the brokerage firm said in December report.

Resource: http://www.business-standard.com/article/markets/cigarette-shares-in-focus-godfrey-phillips-surges-20-116122700478_1.html