Godfrey Phillips

  • Investors can consider retaining their holdings in the Godfrey Philips stock Cigarette Tobacco For Sale, which trades at about 15 times its expected FY-07 earnings. Though the company is in a non-cyclical consumer business, which is at a near-mature stage, its cigarette segment is likely to maintain a consistent 20 per cent earnings growth over the long term. Godfrey Phillips has a strong presence in the northern and western markets Newport Cigarettes Website. Threat from competition is low, as consumers tend to stick to brands Cheapest Cigarettes. Restrictions on advertisements also work to the advantage of such large players as Godfrey Phillips. To garner a larger share of the domestic market, the company launched a new brand and refrained from passing the higher excise duties to consumers. However, with ban on smoking in public, the scope for volume growth may be limited. Consecutive hikes in excise duty are also a dampener as consumers of low-end cigarettes are likely to move to other forms of tobacco consumption. Godfrey Phillips in recent years has ramped up activity in the relatively untapped cigar segment. Godfrey Phillips has a small basket of brands, which it markets in certain pockets of the country. Though the tea business contributes only about three per cent of its revenues, this division has been growing at about 15 per cent annually over a three-year period Buying Cigarettes Online. This division is a dampener to Godfrey Phillips' growth prospects as intense competition in the branded tea market hampers potential for a turnaround in the medium term Marlboro Lights Carton. Financials The company, which is the second largest player in the domestic cigarette industry, operates on lower margins compared to its peers owing to its manufacturing tie-up model.
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