GPI
Group 1 Automotive, Inc.
stock NYSE

In my opinion its down due to 2 things, tobacco tax and the family dispute going on.
* Govt increased tax on cigarettes by 30-40% from Feb 1 and GPI is basically a cigarettes business (99% of sales, no FMCG cushion like ITC) so it fell in jan start when this was announced. ITC and VST also fell so this wasnt specific to GPI.
* The actual worry is demand. Theyve increased Pocket Marlboro price from 70 to 85rs and acc to dealer surveys overall cigarette volumes decreased around 20% in Apr-May. Even the CEO said in the results that next year will be challenging because of the tax.
* Also theres the Modi family dispute, its been going on for a while now. Honestly the stock still gave 200%+ returns in 2024 despite it so its not the reason for this crash, but in a weak phase like now it gives investors one more excuse to stay away.
* The business itself is fine though. In q4 their profit increased 86%, full fy26 32%, gave 50rs dividend too and they're almost debt free.
So is it a good time to enter really depends if you can hold through 2-3 weak quarters because the next few results will probably show weak volumes. Keep tracking q1/q2 fy27 volume commentary before deciding to add more. And rather than lumpsum divide your amt in 3-4 parts so the risk is spread.
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GPI* funds are significantly more tax-efficient than JEP* funds in taxable brokerage accounts. While GPI* fund distributions largely consist of favorable Return of Capital (ROC) and Section 1256 contract gains, JEP* funds distributes its monthly income almost entirely as ordinary income.