Shares of Godfrey Phillips India rose 7% in intraday trade on Monday to hit an all-time high of Rs 2,134.35 on the BSE. The cigarette and tobacco product makers’ shares surpassed the previous high of Rs 2,101.40 on December 12, 2022. The company’s market price has risen 100% in the past six months, compared with a 12% rise in the S&P BSE Sensex over the same period.

The stock surged 63% over the past three months after the company reported a 48% year-on-year rise in net profit for the first half (April-December) of its current financial statement 2022-23 (H1FY23) to Rs 311 crore. Sales rose 38% year-on-year to Rs 4,667 crore. EBITDA margin increased by 100 basis points year-on-year to 9.5% from 8.5% in H1FY22.

The company’s focused approach and improvements in the external environment have helped the company achieve these goals. Management hopes to maintain this momentum through the remainder of FY23.

By the end of September 2022, the number of stores will reach 116. The company said the increased liquidity helped drive business growth.

Godfrey Phillips delivered strong domestic cigarette volume growth in the first half of fiscal 2023. The company’s revenue was underpinned by higher exports of unmanufactured tobacco and cigarettes, contributing Rs 5.66 billion from international operations, up 100% year-on-year. The company’s key brands include Four Square, Red & White, Cavender’s and Stellar & Focus.

In October 2022, Godfrey Phillips divested the chewing business through the sale/transfer of related trademarks and certain non-current assets. According to management, this will help the company to focus more on the cigarette business.

Cigarette demand is beginning to recover as the economy opens up, mobility increases and offices reopen. With the lifting of interstate restrictions, the market service capacity has also improved, leading to cigarette volume and demand recovery.

The government continues to curb the illicit cigarette trade through regular raids and seizures. Godfrey Phillips India said in its FY22 annual report that it is also focusing on stabilizing the domestic legal cigarette market and that modest cigarette taxes may help optimize revenue collection and reduce the shift to cheaper illicit cigarettes.