Author: Nishtha Mehrotra | EQMint
Godfrey Phillips India is valued at nearly 9% of ITC’s market capitalisation, despite having less than one-tenth of ITC’s revenue and profit. The comparison highlights how growth and profitability are shaping the valuation gap between the two tobacco companies.
ITC reported revenue of around ₹80,867 crore and profit after tax (PAT) of ₹21,018 crore, while Godfrey Phillips reported revenue of about ₹6,853 crore and PAT of ₹1,526 crore.
ITC’s market capitalisation stands at roughly ₹3.20 lakh crore, compared with around ₹28,852 crore for Godfrey Phillips. On these figures, ITC trades at approximately 15 times PAT, while Godfrey Phillips trades at around 19 times.
Godfrey Phillips’ PAT has also risen from about ₹1,072 crore to ₹1,526 crore, representing growth of roughly 42%.
However, the valuation comes with higher concentration risk. Unlike diversified ITC, Godfrey Phillips remains heavily dependent on cigarettes and tobacco products. Tax changes, regulation, pricing and consumer trends could therefore have a larger impact on its earnings.
The comparison suggests that investors are assigning a premium to Godfrey Phillips for its faster earnings growth, while ITC continues to command a valuation supported by scale, diversification and strong cash generation.
Disclaimer: This article is for information purposes only and is not investment advice.
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