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Godfrey Phillips-a Phillip Morris/Modi co

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2265
Printed Date: 21/Apr/2025 at 3:09pm


Topic: Godfrey Phillips-a Phillip Morris/Modi co
Posted By: Ajith
Subject: Godfrey Phillips-a Phillip Morris/Modi co
Date Posted: 31/Jul/2009 at 3:25pm
 Great results from ITC indicated revival for cigarette industry and Godfrey has come out with stunning results even allowing for spurt in other income.2009-10 PE at current price of 1771 maybe around 10-12 which is absurdly low for an Altria/Phillip Morris/Modi company.I think Modi factor is offset by Altria/Phillip Morris.

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Ajith


Replies:
Posted By: beryr
Date Posted: 01/Aug/2009 at 12:20pm
 Yes the whole industry is showing great results. Even VST Industries came out with stellar results. All companies are now quoting at all time highs. With no new entrants permitted can we see sustainable growth in profits ? Any views on on which one out of ITC, Godfrey, or VST Industies is better.

Posted By: Vivek Sukhani
Date Posted: 01/Aug/2009 at 12:48pm
Godfrey and VST are better than ITC. ITC has a lot of baggages. By the way, there used to be a company by the name of Golden Tobacco, is it still there???

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Jai Guru!!!

Posted By: beryr
Date Posted: 01/Aug/2009 at 12:58pm
 Yes GTC is trying to exploit its land bank and was a BIFR case too. I feel VST Ind could be a better choice since it pays 300% as dividend compared to just 250% by Godfrey. Also BAT could be interested in taking control if Brightstar Investment ( Mr Damani's investment co.) which has a 25% stake gets a suitable price. Could this be a trigger for substantial rerating ? Any views from other members on VST Ind please.

Posted By: Ajith
Date Posted: 01/Aug/2009 at 5:23pm
    Godfrey is best because it is gaining marketshare.

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Ajith

Posted By: Vivek Sukhani
Date Posted: 01/Aug/2009 at 5:33pm
Originally posted by beryr

 Yes GTC is trying to exploit its land bank and was a BIFR case too. I feel VST Ind could be a better choice since it pays 300% as dividend compared to just 250% by Godfrey. Also BAT could be interested in taking control if Brightstar Investment ( Mr Damani's investment co.) which has a 25% stake gets a suitable price. Could this be a trigger for substantial rerating ? Any views from other members on VST Ind please.
 
You make perfect sense.


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Jai Guru!!!

Posted By: barla
Date Posted: 24/May/2010 at 5:47pm
Originally posted by manish_okhade

Subu,
 
Have a look over Godfrey also, it looks growth cum safety play. Recently they got the all india distribution rights for Marlboro. See below history, i guess its a good buy near 1500-1600:
 
                  Price            EPS         PE
2002   328-399 45.96    7 to 8
2003   325-435 36.45    9 to 11
2004   370-599 50.18    7 to 11
2005   765-1600 61.16    12 to 26
2006  1000/1400 57.82    17-24
2007  1280-1772 84.73    15-20
2008   790-1411 107.92   7 to 12
2009  1000-1900 104.73   10 to 19
 
 
Looks like inferior to ITC but better than VST.
 
Lalit Modi is set to inherit the company. He is occupying a flat in mumbai that has been leased by godfrey Philips.
 
Now in the midst of finalising a lease of a property at Mumbai on a monthly rental of Rs. 12.5 lakhs (to be paid by Godfrey philips).
 
Where VST (pedigree of ITC) and Godfrey Philips (part of the Modi empire).

Posted By: basant
Date Posted: 24/May/2010 at 6:04pm
These are lottery ticket investments with indefinete timelines. The real trigger will come on a Philip Moris open offer but for that there has to be a Govt. Policy change and that will take some doing. Too many other stocks to bet on.


Originally posted by manish_okhade

Subu,
 
Have a look over Godfrey also, it looks growth cum safety play. Recently they got the all india distribution rights for Marlboro. See below history, i guess its a good buy near 1500-1600:
 
                  Price            EPS         PE
2002   328-399 45.96    7 to 8
2003   325-435 36.45    9 to 11
2004   370-599 50.18    7 to 11
2005   765-1600 61.16    12 to 26
2006  1000/1400 57.82    17-24
2007  1280-1772 84.73    15-20
2008   790-1411 107.92   7 to 12
2009  1000-1900 104.73   10 to 19
 
 
Looks like inferior to ITC but better than VST.


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Posted By: barla
Date Posted: 24/May/2010 at 6:32pm
Originally posted by Ajith

 Great results from ITC indicated revival for cigarette industry and Godfrey has come out with stunning results even allowing for spurt in other income.2009-10 PE at current price of 1771 maybe around 10-12 which is absurdly low for an Altria/Phillip Morris/Modi company.I think Modi factor is offset by Altria/Phillip Morris.
 
Is it??  What is the role of Philip Morris in managing Godfrey Philips.

Posted By: barla
Date Posted: 24/May/2010 at 6:34pm
Is it??? What is the role of Philip Moris in management.

Posted By: barla
Date Posted: 24/May/2010 at 6:36pm
What roll does Philip Morris play in management of Godfrey.

Posted By: excel_monkey
Date Posted: 31/May/2010 at 4:19pm
Godfrey was suppose to start marketing Marlboro is India

somehow the sales of Marlboro have not translated into company's financials?

Posted By: beryr
Date Posted: 21/Apr/2011 at 9:16am
  VST announced a better set of numbers recently - EPS of 61.53 (last year 40.18) and a dividend of 450% (300%). The stock made new highs - any views and on comparision with Godfrey Philips - do we have scope for further upsides? Incidentally a pack of Marlboro retails at 10$ in New York and the comparable price in India is Rs 100/. Surely we need to look at the whole sector which is basically a monopoly of 4 companies.

Posted By: Ravenrage
Date Posted: 22/Apr/2011 at 4:22pm
One can look at Kothari Products too .

Posted By: Ajith
Date Posted: 20/Jul/2011 at 11:00pm
Its really gone up recently from 2000 to 3200 on higher growth expectations.I sold some 2600-3000.Holding the rest.

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Ajith


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