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Godfrey Phillips India Limited’s board of directors announces bonus issue 2:1 ratio. This company is a leading Cigarette manufacturing company in India and also a part of the KK Modi Group. The company earns 93% of its revenue from its Cigarette business. Currently, this company manufactures and sells cigarettes in more than 40 countries around the world. For the past few years, this company has given multi-bagger returns such as the past 5 years’ return of 625%, 1 year’s return of 237%, 6 months’s return of 116% and the past 1 month’s return are 70% plus.
Godfrey Phillips India Limited Bonus Issue 2:1 Details
The company’s board of directors informed the Indian stock exchanges NSE and BSE on 6th September 2024 that the issue of bonus shares in the ratio of 2:1 (Two) new fully paid-up Equity Shares of Rs. 2/- each for every 1 (One) existing fully paid-up Equity Shares of Rs. 2/- each and board of directors announces Friday, 20th September 2024 as a record date.
This means if an investor has 1 share of the company then the company will give 2 more shares as a bonus the total number of shares will be (1+2)=3 but to get this bonus share the shares must be in Demat account before Friday, 20th September 2024 will be This bonus share will not be available if the shares are not in the demat account on this date. Please Check the Company bonus declared pdf here.
What is the main purpose behind giving bonus shares to the company?
On 6th September 2024, this share opened at ₹6,383.95 on NSE and ₹6,479.95 on BSE and closed at ₹7,205 level. The bonus shares returned more than 11% in one day after the announcement. The main purpose of giving these bonus shares to the company is firstly to increase liquidity. At present, the price of one share is ₹7,205 rupees but after the bonus, the price of one share may be like ₹2,371.67 rupees, as a result, buying and selling of shares will become easier.
The second reason is to increase the demand for shares because giving bonus shares is considered as a positive aspect for any company and also bonus shares indicate the company’s strong financial performance. When new investors start investing in the market, the demand for shares in the market starts to increase, as a result, the price of shares also increases.
Read More: ITC Share Price Target 2025, 2026, 2027, 2028, 2029, 2030
Godfrey Phillips India Limited Recent Fundamental
| Market Cap | ₹37,466 Cr. |
| Industry P/E | 36.2 |
| Stock P/E | 41.8 |
| Face Value | ₹2.00 |
| ROE% | 19.0 % |
| ROCE% | 22.2 % |
| Debt to equity | 0.08 |
| PEG Ratio | 1.49 |
| EVEBITDA | 34.0 |
| Dividend yield% | 0.78 % |
| 52 Week High | ₹7,320.00 |
| 52 Week Low | ₹1,992.10 |
Godfrey Phillips India Limited Financial Performance Y-o-Y
On a quarter-on-quarter basis or year-on-year basis, the net sales and net profit after tax of this company are increasing massively.
| Particulars | 31 March, 2024 | 31 March, 2023 | 31 March 2022 |
| Sales/Revenue | 4,420 | 3,562 | 2,688 |
| Total Expenses | 3,527 | 2,759 | 2,054 |
| Net Profit | 884 | 690 | 438 |
| Net Cash Flow | -4 | -11 | 6 |
| Total Assets | 5,843 | 4,968 | 4,102 |
| Reserves and Surplus | 4,222 | 3,538 | 2,917 |
| Total Borrowing | 345 | 355 | 337 |
| EPS in Rupees | ₹169.84 | ₹132.80 | ₹84.25 |
FAQ
What is the ratio of the bonus share issue by Godfrey Phillips India Limited?
The company is offering bonus shares in a ratio of 2:1, meaning every shareholder will receive 2 new shares for every 1 share they currently hold.
How do I qualify to receive the bonus shares?
You must be a shareholder of the company before the record date 20 September 2024.
Are bonus shares taxable?
Bonus shares are generally not taxable at the time of issuance, but tax may be applicable on capital gains when you sell shares.
