Godfrey Phillips shares fall 5% as investors sell on rise after 26% three-day rally
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Shares of Godfrey Phillips fell 5% on Friday to hit the day's low of Rs 2,400 on the NSE after investors booked gains following a 26% rally in the past three trading sessions. The cigarette maker, synonymous with the Marlboro brand, witnessed a strong rally along with other peers, including ITC and VST industries, after media reports indicated that the companies had raised prices to pass on the higher excise duty hike to consumers. The report said that the move could arrest the EBIT (Earnings Before Interest and Taxes) decline to around 2%, compared with earlier estimates of 8–15%. Godfrey Phillips India has raised the price of Marlboro Compact from Rs 9.5 per stick to Rs 11.5 per stick, according to a news report. ITC is likely to raise cigarette prices by 20–40% across brands, with fresh shipments expected to reach the market soon. Retailers are also selling existing inventory at higher prices. These developments follow the governme...