Godfrey Phillips - Value Pick; Not rated - Emkay

- Pan Masala and chewing tobacco to be next growth driver. Evident from jump in contribution from this chewing category from Rs. 200 mn in FY11 to Rs. 1200mn in FY12

- Company getting pro-active in cigarette business however the company is facing severe competiton from ITC. Also, Marlboro not gaining significant traction

- It moved its manufacturing operation from Andheri to Rabale investing Rs. 5bn. We believe the capex will continue to be return dilutive

- Godfrey Phillips is a preferred value investment idea. We are enthused by attractive operating cashflow that the business continues to generate.

Source : Equity Bulls

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