Godfrey Phillips India's stock surged over 14 percent in the morning trade on BSE on August 27, a day after the company held an investor presentation.
On August 26, in a regulatory filing on BSE, the company conducted earnings presentations and discussed plans for the future.
The company said it aims to strengthen partnership with Philip Morris International for manufacturing and distribution of Marlboro brand cigarettes in India and plans to build on existing cigarette export markets to enhance its own brand sales.
The company said it will continue to expand chewing and confectionary product offerings to suit varying consumer tastes and preferences.
On August 22, the cigarette maker reported a 53.56 percent decline in its consolidated net profit to Rs 55.09 crore for the first quarter ended June 30. The company had a net profit of Rs 118.63 crore in the same quarter a year ago.
Godfrey Phillips' total income from operations during the April-June quarter stood at Rs 503.60 crore, down 41.33 percent, compared with Rs 858.49 crore in the same period last fiscal, the company said in a BSE filing.
As per the brokerage firm Centrum Broking, Godfrey Phillips has been the worst-hit cigarette player during the lockdown due to the closure of factories and distribution points.
Centrum expects a sharp recovery in sales in Q2FY21 as all factories are operational now.
"The channel partners suggest pick up for value-for-money cigarettes, could unfold big opportunity for GPIL as its major portfolio is skewed towards RSFT/DSFT segment," said Centrum.
The brokerage maintained its estimates and reiterate the DCF-based target price of Rs 1,320, implying 17 times FY22E EPS.
At 1035 hours, shares of the company were trading 10 percent higher at Rs 1048.20 on BSE
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