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Godfrey Phillips India

NSEI:GODFRYPHLP
Snowflake Description

Flawless balance sheet with proven track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GODFRYPHLP
NSEI
₹39B
Market Cap
  1. Home
  2. IN
  3. Food, Beverage & Tobacco
Company description

Godfrey Phillips India Limited manufactures and sells cigarettes and chewing products primarily in India. The last earnings update was 54 days ago. More info.


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  • Godfrey Phillips India has significant price volatility in the past 3 months.
GODFRYPHLP Share Price and Events
7 Day Returns
-3.5%
NSEI:GODFRYPHLP
-2.4%
IN Tobacco
-2.3%
IN Market
1 Year Returns
-1.6%
NSEI:GODFRYPHLP
-6.7%
IN Tobacco
-5.3%
IN Market
GODFRYPHLP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Godfrey Phillips India (GODFRYPHLP) -3.5% -17.1% -34.5% -1.6% -39.2% 38.7%
IN Tobacco -2.4% -3.8% -13.1% -6.7% 4.6% 12.1%
IN Market -2.3% -3.9% -5% -5.3% 17.9% 31.9%
1 Year Return vs Industry and Market
  • GODFRYPHLP outperformed the Tobacco industry which returned -6.7% over the past year.
  • GODFRYPHLP outperformed the Market in India which returned -5.3% over the past year.
Price Volatility
GODFRYPHLP
Industry
5yr Volatility vs Market

Value

 Is Godfrey Phillips India undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Godfrey Phillips India to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Godfrey Phillips India.

NSEI:GODFRYPHLP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 14.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:GODFRYPHLP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Tobacco Unlevered Beta Simply Wall St/ S&P Global 0.34
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.344 (1 + (1- 35%) (1.08%))
0.562
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.8 * 8.6%)
14.43%

Discounted Cash Flow Calculation for NSEI:GODFRYPHLP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Godfrey Phillips India is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:GODFRYPHLP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.43%)
2020 4,511.55 Est @ 4.65% 3,942.63
2021 4,760.51 Est @ 5.52% 3,635.58
2022 5,052.23 Est @ 6.13% 3,371.81
2023 5,383.38 Est @ 6.55% 3,139.75
2024 5,752.31 Est @ 6.85% 2,931.86
2025 6,158.55 Est @ 7.06% 2,743.08
2026 6,602.49 Est @ 7.21% 2,569.97
2027 7,085.19 Est @ 7.31% 2,410.09
2028 7,608.27 Est @ 7.38% 2,261.66
2029 8,173.79 Est @ 7.43% 2,123.36
Present value of next 10 years cash flows ₹29,129.79
NSEI:GODFRYPHLP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹8,173.79 × (1 + 7.55%) ÷ (14.43% – 7.55%)
₹127,774.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹127,774.81 ÷ (1 + 14.43%)10
₹33,192.98
NSEI:GODFRYPHLP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹29,129.79 + ₹33,192.98
₹62,322.77
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹62,322.77 / 51.99
₹1198.65
NSEI:GODFRYPHLP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:GODFRYPHLP represents 1.00041x of BSE:500163
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00041x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 1,198.65 x 1.00041
₹1,199.15
Value per share (INR) From above. ₹1,199.15
Current discount Discount to share price of ₹740.10
= -1 x (₹740.10 - ₹1,199.15) / ₹1,199.15
38.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Godfrey Phillips India is available for.
Intrinsic value
38%
Share price is ₹740.1 vs Future cash flow value of ₹1199.15
Current Discount Checks
For Godfrey Phillips India to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Godfrey Phillips India's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Godfrey Phillips India's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Godfrey Phillips India's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Godfrey Phillips India's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:GODFRYPHLP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹50.06
BSE:500163 Share Price ** BSE (2019-07-23) in INR ₹739.8
India Tobacco Industry PE Ratio Median Figure of 5 Publicly-Listed Tobacco Companies 14.99x
India Market PE Ratio Median Figure of 2,833 Publicly-Listed Companies 14.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Godfrey Phillips India.

NSEI:GODFRYPHLP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500163 Share Price ÷ EPS (both in INR)

= 739.8 ÷ 50.06

14.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Godfrey Phillips India is good value based on earnings compared to the IN Tobacco industry average.
  • Godfrey Phillips India is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Godfrey Phillips India's expected growth come at a high price?
Raw Data
NSEI:GODFRYPHLP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
15.2%per year
Global Tobacco Industry PEG Ratio Median Figure of 7 Publicly-Listed Tobacco Companies 1.59x
India Market PEG Ratio Median Figure of 538 Publicly-Listed Companies 1.22x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Godfrey Phillips India, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Godfrey Phillips India's assets?
Raw Data
NSEI:GODFRYPHLP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹392.06
BSE:500163 Share Price * BSE (2019-07-23) in INR ₹739.8
India Tobacco Industry PB Ratio Median Figure of 5 Publicly-Listed Tobacco Companies 1.91x
India Market PB Ratio Median Figure of 3,670 Publicly-Listed Companies 0.91x
NSEI:GODFRYPHLP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500163 Share Price ÷ Book Value per Share (both in INR)

= 739.8 ÷ 392.06

1.89x

* Primary Listing of Godfrey Phillips India.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Godfrey Phillips India is good value based on assets compared to the IN Tobacco industry average.
X
Value checks
We assess Godfrey Phillips India's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tobacco industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tobacco industry average (and greater than 0)? (1 check)
  5. Godfrey Phillips India has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Godfrey Phillips India expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

  • No analysts cover Godfrey Phillips India, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Godfrey Phillips India expected to grow at an attractive rate?
  • Godfrey Phillips India's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Godfrey Phillips India's earnings growth is positive but not above the India market average.
  • Unable to compare Godfrey Phillips India's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:GODFRYPHLP Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:GODFRYPHLP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 15.2%
Global Tobacco Industry Earnings Growth Rate Market Cap Weighted Average 8.4%
Global Tobacco Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
India Market Earnings Growth Rate Market Cap Weighted Average 16.7%
India Market Revenue Growth Rate Market Cap Weighted Average 9.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:GODFRYPHLP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:GODFRYPHLP Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 24,972 2,603
2018-03-31 23,256 5,162 1,591
2017-03-31 24,026 2,453 1,372

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Godfrey Phillips India's earnings are expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if Godfrey Phillips India is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:GODFRYPHLP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Godfrey Phillips India Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GODFRYPHLP Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 50.06
2018-03-31 30.60
2017-03-31 26.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Godfrey Phillips India will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Godfrey Phillips India's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Global market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Godfrey Phillips India has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Godfrey Phillips India performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Godfrey Phillips India's growth in the last year to its industry (Tobacco).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Godfrey Phillips India's year on year earnings growth rate has been positive over the past 5 years.
  • Godfrey Phillips India's 1-year earnings growth exceeds its 5-year average (63.6% vs 5%)
  • Godfrey Phillips India's earnings growth has exceeded the Global Tobacco industry average in the past year (63.6% vs 24.7%).
Earnings and Revenue History
Godfrey Phillips India's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Godfrey Phillips India Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:GODFRYPHLP Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 24,972.30 2,603.10 4,262.70
2018-03-31 23,256.37 1,591.07 4,028.09
2017-03-31 24,026.36 1,372.28 4,243.50
2016-03-31 23,306.92 1,696.74 4,533.50
2015-03-31 25,869.51 1,833.24 6,177.08
2014-03-31 24,788.79 1,755.42 8,310.29
2013-03-31 20,975.93 1,700.26 7,538.53

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Godfrey Phillips India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Godfrey Phillips India used its assets less efficiently than the IN Tobacco industry average last year based on Return on Assets.
  • Godfrey Phillips India has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Godfrey Phillips India's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tobacco industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Godfrey Phillips India has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Godfrey Phillips India's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Godfrey Phillips India's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Godfrey Phillips India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Godfrey Phillips India's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Godfrey Phillips India's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 25.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Godfrey Phillips India Company Filings, last reported 3 months ago.

NSEI:GODFRYPHLP Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 20,715.20 420.00 2,958.20
2018-03-31 18,299.89 326.32 1,939.24
2017-03-31 17,009.06 733.90 1,012.91
2016-03-31 16,200.35 1,315.90 698.33
2015-03-31 13,170.45 2,765.62 327.63
2014-03-31 11,857.19 2,387.80 1,008.96
2013-03-31 10,592.93 3,035.60 1,824.43
  • Godfrey Phillips India's level of debt (2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (20.1% vs 2% today).
  • Debt is well covered by operating cash flow (1229.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 313.9x coverage).
X
Financial health checks
We assess Godfrey Phillips India's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Godfrey Phillips India has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Godfrey Phillips India's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.35%
Current annual income from Godfrey Phillips India dividends.
If you bought ₹2,000 of Godfrey Phillips India shares you are expected to receive ₹27 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Godfrey Phillips India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.57%).
  • Godfrey Phillips India's dividend is below the markets top 25% of dividend payers in India (2.33%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:GODFRYPHLP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Global Tobacco Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.9%
India Market Average Dividend Yield Market Cap Weighted Average of 1446 Stocks 1.5%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:GODFRYPHLP Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-30 10.000 1.188
2018-08-29 8.000 0.877
2018-05-29 8.000 1.047
2017-05-30 8.000 0.813
2016-08-30 8.000 0.710
2016-05-30 8.000 0.784
2015-09-03 8.000 0.813
2015-06-01 8.000 1.516
2014-10-20 8.000 1.511
2013-08-20 8.000 1.405
2013-05-29 8.000 1.434
2012-08-16 8.000 1.278
2012-06-15 8.000 1.203
2011-05-30 7.000 1.164
2010-08-02 5.000 1.329
2010-06-01 5.000 1.358
2009-06-30 5.000 1.442
2009-06-01 5.000 2.183

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Godfrey Phillips India's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Godfrey Phillips India's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Godfrey Phillips India afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Godfrey Phillips India has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Godfrey Phillips India's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bhisham Wadhera
COMPENSATION ₹0
CEO Bio

Mr. Bhisham Wadhera serves as the Chief Executive Officer and BR Head of Godfrey Phillips India Limited. Mr. Wadhera served as Chief Operating Officer of International at Godfrey Phillips India Limited and served as its Executive Vice President of Sales.

CEO Compensation
  • Bhisham's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Bhisham's remuneration is lower than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Godfrey Phillips India management team in years:

7.7
Average Tenure
49
Average Age
  • The average tenure for the Godfrey Phillips India management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bhisham Wadhera

TITLE
CEO & BR Head

Sunil Agrawal

TITLE
CFO & Executive VP of Finance
COMPENSATION
₹17M
TENURE
8.5 yrs

Sharad Aggarwal

TITLE
Executive VP of Operations & Whole Time Director
COMPENSATION
₹13M
AGE
47
TENURE
1.8 yrs

Sanjay Gupta

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹11M
TENURE
10.7 yrs

Samir Modi

TITLE
Executive Director
COMPENSATION
₹106M
AGE
49

Krishan Modi

TITLE
President
COMPENSATION
₹84M
AGE
79
TENURE
6.9 yrs
Board of Directors Tenure

Average tenure and age of the Godfrey Phillips India board of directors in years:

4.7
Average Tenure
79
Average Age
  • The tenure for the Godfrey Phillips India board of directors is about average.
Board of Directors

Rajendra Shah

TITLE
Chairman of the Board
COMPENSATION
₹1M
AGE
88

Sharad Aggarwal

TITLE
Executive VP of Operations & Whole Time Director
COMPENSATION
₹13M
AGE
47
TENURE
1.8 yrs

Samir Modi

TITLE
Executive Director
COMPENSATION
₹106M
AGE
49
TENURE
25.5 yrs

Krishan Modi

TITLE
President
COMPENSATION
₹84M
AGE
79
TENURE
39.7 yrs

Lalit Bhasin

TITLE
Non Executive & Independent Director
COMPENSATION
₹2M
AGE
80

Anup Kothari

TITLE
Non Executive & Independent Director
COMPENSATION
₹1M
TENURE
30.3 yrs

Bina Modi

TITLE
Non-Independent & Non-Executive Director
COMPENSATION
₹300K
TENURE
5.3 yrs

Atul Gupta

TITLE
Non-Executive Independent Director
COMPENSATION
₹1M
TENURE
4.1 yrs

Ruchir Modi

TITLE
Non-Independent & Non-Executive Director
COMPENSATION
₹15M
TENURE
3.3 yrs

Nirmala Bagri

TITLE
Non-Executive & Independent Director
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Godfrey Phillips India's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Godfrey Phillips India has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Read This Before Judging Godfrey Phillips India Limited's (NSE:GODFRYPHLP) ROE

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Godfrey Phillips India: 13% = ₹2.6b ÷ ₹21b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Godfrey Phillips India Have A Good Return On Equity? … Godfrey Phillips India's Debt And Its 13% ROE While Godfrey Phillips India does have a tiny amount of debt, with debt to equity of just 0.02, we think the use of debt is very modest.

Simply Wall St -

A Spotlight On Godfrey Phillips India Limited's (NSE:GODFRYPHLP) Fundamentals

Today I've chosen to put the spotlight on Godfrey Phillips India Limited (NSE:GODFRYPHLP) due to its excellent fundamentals in more than one area. … If you're interested in understanding beyond my broad commentary, read the full report on Godfrey Phillips India here. … NSEI:GODFRYPHLP Historical Dividend Yield, June 1st 2019 Next Steps: For Godfrey Phillips India, I've compiled three relevant aspects you should look at: Future Outlook: What are well-informed industry analysts predicting for GODFRYPHLP’s future growth?

Simply Wall St -

Shareholders Should Look Hard At Godfrey Phillips India Limited’s (NSE:GODFRYPHLP) 8.8% Return On Capital

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Do Institutions Own Godfrey Phillips India Limited (NSE:GODFRYPHLP) Shares?

A look at the shareholders of Godfrey Phillips India Limited (NSE:GODFRYPHLP) can tell us which group is most powerful. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … With a market capitalization of ₹59b, Godfrey Phillips India is a decent size, so it is probably on the radar of institutional investors.

Simply Wall St -

Is Godfrey Phillips India Limited's (NSE:GODFRYPHLP) High P/E Ratio A Problem For Investors?

We'll show how you can use Godfrey Phillips India Limited's (NSE:GODFRYPHLP) P/E ratio to inform your assessment of the investment opportunity. … Godfrey Phillips India has a P/E ratio of 30.24, based on the last twelve months. … How Do You Calculate Godfrey Phillips India's P/E Ratio

Simply Wall St -

Where Godfrey Phillips India Limited (NSE:GODFRYPHLP) Stands In Terms Of Earnings Growth Against Its Industry

After looking at Godfrey Phillips India Limited's (NSE:GODFRYPHLP) latest earnings announcement (31 March 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … I also compare against an industry benchmark to check whether Godfrey Phillips India's performance has been impacted by industry movements. … Check out our latest analysis for Godfrey Phillips India?

Simply Wall St -

Is Godfrey Phillips India Limited's (NSE:GODFRYPHLP) ROE Of 8.7% Concerning?

One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.087 in profit. … View our latest analysis for Godfrey Phillips India? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Shareholders Own Godfrey Phillips India Limited (NSE:GODFRYPHLP)?

If you want to know who really controls Godfrey Phillips India Limited (NSE:GODFRYPHLP), then you'll have to look at the makeup of its share registry. … Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … Godfrey Phillips India is a smaller company with a market capitalization of ₹44b, so it may still be flying under the radar of many institutional investors.

Simply Wall St -

Does Godfrey Phillips India Limited (NSE:GODFRYPHLP)'s Capital Return Make The Cut?

and want a simplistic look at the return on Godfrey Phillips India Limited (NSE:GODFRYPHLP) stock. … Purchasing Godfrey Phillips India gives you an ownership stake in the company. … Thus, to understand how your money can grow by investing in Godfrey Phillips India, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Despite Its High P/E Ratio, Is Godfrey Phillips India Limited (NSE:GODFRYPHLP) Still Undervalued?

We'll show how you can use Godfrey Phillips India Limited's (NSE:GODFRYPHLP) P/E ratio to inform your assessment of the investment opportunity. … Godfrey Phillips India has a P/E ratio of 25.88, based on the last twelve months. … How Do You Calculate Godfrey Phillips India's P/E Ratio

Simply Wall St -

Company Info

Description

Godfrey Phillips India Limited manufactures and sells cigarettes and chewing products primarily in India. It operates through Cigarette and Tobacco Products; and Tea and Other Retail Products segments. The company also trades in tobacco products, tea, and other retail products. It sells its cigarette products under the Four Square, Red & White, and Cavanders, Stellar, Tipper & North Pole, and Marlboro brands; pan masala under the Pan Vilas brand; mouth freshener under the Pan Vilas Silver Dewz brand; and candies under the Funda Goli brand name. In addition, the company grows tobacco; and operates convenience stores under the Twenty Four Seven name. Further, it provides various professional services, including contract manufacturing, smoke analysis, cut tobacco, and other services, as well as involved in the real estate business. The company exports its cigarette brands, such as Force 10, Jaisalmer, Originals, Black Jack, B&B, Stellar, and Sahara, as well as cut tobacco to various countries in the Middle East, Africa, South East Asia, East Europe, Australia, and South and Central America; and bulk and specialty teas to the United Kingdom, Ireland, the Netherlands, Russia, Azerbaijan, Turkmenistan, Kazakhstan, Singapore, Kenya, Syria, Egypt, the United Arab Emirates, Pakistan, Afghanistan, and others. Godfrey Phillips India Limited was incorporated in 1936 and is headquartered in New Delhi, India.

Details
Name: Godfrey Phillips India Limited
GODFRYPHLP
Exchange: NSEI
Founded: 1936
₹39,013,637,872
51,993,920
Website: http://www.godfreyphillips.com
Address: Godfrey Phillips India Limited
49, Community Centre,
Friends Colony,
New Delhi,
Delhi, 110025,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500163 Equity Shares Mumbai Stock Exchange IN INR 04. Aug 1994
NSEI GODFRYPHLP Equity Shares National Stock Exchange of India IN INR 04. Aug 1994
Number of employees
Current staff
Staff numbers
0
Godfrey Phillips India employees.
Industry
Tobacco
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/23 13:08
End of day share price update: 2019/07/23 00:00
Last earnings filing: 2019/05/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.