Godfrey Phillips jumps over 3%

Godfrey Phillips is doing very well today, with the stock spurting up 3.5% at Rs.2700, with an intra day high at Rs.2735.20. Volumes are up over 3 times.

The stock has jumped up enthused by the good performance for Q3FY14. It posted a net sales at Rs.623 crore, up 17% (YoY). Its total expenses rose 11%, led by higher raw material costs, employee expenses and advertising and promotion expenses.But operating costs, as a percentage to total sales has come down from 88% to 82%.  Tax outgo burgeoned by 111%, it ended the quarter with a net profit at Rs.71 crore, up 45%.

Its paid-up equity capital is pretty small for a company of this size at Rs.10.40 crore, with reserves at Rs.1031 crore. Its 9MFY14 EPS is at Rs.127, giving an annualized EPS of Rs.170. Market cap is at Rs.2822 crore. Our editor, Mr.SP Tulsian recommends one to buy this stock as an investor.