Last Updated on Sep 19, 2023 by Anjali Chourasiya
Table of Contents
List of all tobacco stocks in India (2023)
| Name | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 1Y Return (%) | 5Y Avg Net Profit Margin | 5Y Avg Return on Investment | Fundamental Score |
| ITC Ltd | 5,59,103.09 | 452.05 | 29.13 | 36.45 | 26.07 | 23.63 | 6.67 |
| Godfrey Phillips India Ltd | 10,762.22 | 2,056.35 | 15.59 | 86.99 | 14.00 | 15.00 | 6.17 |
| VST Industries Ltd | 5,456.41 | 3,568.00 | 16.69 | 11.24 | 24.11 | 32.67 | 6.50 |
| NTC Industries Ltd | 106.95 | 88.54 | 16.90 | -10.52 | 20.62 | 10.80 | – |
| Golden Tobacco Ltd | 97.99 | 55.35 | 12.84 | – | -6.51 | – | – |
| Sinnar Bidi Udyog Ltd | 12.71 | 333.70 | 28.90 | 55.03 | -1.45 | -0.27 | – |
Note: The data is from 19th September 2023. To get this list of best tobacco companies based on a 1-yr return in India on the Tickertape Stock Screener, apply the below-mentioned filter.
- Sector > FMCG > Tobacco
- 1Y Return
- 5Y Average Net Profit Margin
- 5Y Average Return on Investment
- Fundamental Score
Fundamental Score: It is a smallcase proprietary score between 1 and 10 assigned to stocks listed on the NSE. The score helps rank the stock over other stocks in the respective sector. The higher the score, the better the company. The score is calculated considering factors like valuation, profitability, market share growth, financial health and earnings growth of the company.
Best tobacco companies in India – Based on 1-yr return
| Name | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 1Y Return (%) |
| Godfrey Phillips India Ltd | 10,762.22 | 2,056.35 | 15.59 | 86.99 |
| Sinnar Bidi Udyog Ltd | 12.71 | 333.70 | 28.90 | 55.03 |
| ITC Ltd | 5,59,103.09 | 452.05 | 29.13 | 36.45 |
| VST Industries Ltd | 5,456.41 | 3,568.00 | 16.69 | 11.24 |
Note: The data is from 19th September 2023. To get this list of best tobacco companies based on a 1-yr return in India on the Tickertape Stock Screener, apply the below-mentioned filter.
- Sector > FMCG > Tobacco
- 1Y Return: Set to positive – Sort from highest to lowest
Top tobacco companies in India – Based on 5-yr CAGR
| Name | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | 5Y CAGR (%) |
| NTC Industries Ltd | 106.95 | 88.54 | 16.90 | 19.99 |
| Godfrey Phillips India Ltd | 10,762.22 | 2,056.35 | 15.59 | 17.37 |
| Sinnar Bidi Udyog Ltd | 12.714 | 333.7 | 28.90 | 9.19 |
| ITC Ltd | 5,59,103.09 | 452.05 | 29.13 | 8.31 |
| VST Industries Ltd | 5,456.41 | 3,568.00 | 16.69 | 2.92 |
Note: The data is from 19th September 2023. To get this list of best tobacco companies based on the 5-yr CAGR in India on the Tickertape Stock Screener, apply the below-mentioned filter.
- Sector > FMCG > Tobacco
- 5Y CAGR Return: Set to positive – Sort from highest to lowest
Highest dividend-yielding tobacco stocks in India
| Name | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | Dividend Yield (%) |
| VST Industries Ltd | 5,456.41 | 3,568.00 | 16.69 | 4.25 |
| ITC Ltd | 5,59,103.09 | 452.05 | 29.13 | 3.45 |
| Godfrey Phillips India Ltd | 10,762.22 | 2,056.35 | 15.59 | 2.13 |
Note: The data is from 19th September 2023. To get this list of best tobacco companies based on the highest dividend yield in India on the Tickertape Stock Screener, apply the below-mentioned filter.
- Sector > FMCG > Tobacco
- Dividend Yield: Set to positive – Sort from highest to lowest
Best tobacco stocks based on high net profit margin
| Name | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | Net Profit Margin (%) |
| ITC Ltd | 5,59,103.09 | 452.05 | 29.13 | 26.28 |
| VST Industries Ltd | 5,456.41 | 3,568.00 | 16.69 | 23.89 |
| Godfrey Phillips India Ltd | 10,762.22 | 2,056.35 | 15.59 | 17.98 |
| Golden Tobacco Ltd | 97.99 | 55.35 | 12.84 | 16.63 |
| NTC Industries Ltd | 106.95 | 88.54 | 16.90 | 12.08 |
| Sinnar Bidi Udyog Ltd | 12.71 | 333.70 | 28.90 | 6.29 |
Note: The data is from 19th September 2023. To get this list of best tobacco companies based on high net profit margin in India on the Tickertape Stock Screener, apply the below-mentioned filter.
- Sector > FMCG > Tobacco
- Net Profit Margin: Set to positive – Sort from highest to lowest
Top tobacco stocks with the highest net income
| Name | Market Cap (Rs. in cr.) | Close Price (Rs.) | PE Ratio | Net Income (Q) (Rs. in cr.) |
| ITC Ltd | 5,59,103.09 | 452.05 | 29.13 | 5,104.93 |
| Godfrey Phillips India Ltd | 10,762.22 | 2,056.35 | 15.59 | 254.45 |
| VST Industries Ltd | 5,456.41 | 3,568.00 | 16.69 | 83.70 |
| NTC Industries Ltd | 106.95 | 88.54 | 16.90 | 3.48 |
| Sinnar Bidi Udyog Ltd | 12.71 | 333.70 | 28.90 | 0.02 |
Note: The data is from 19th September 2023. To get this list of best tobacco companies based on a high net income for this quarter in India on the Tickertape Stock Screener, apply the below-mentioned filter.
- Sector > FMCG > Tobacco
- Net Income (Q): Set to positive – Sort from highest to lowest
5 things to consider before investing in tobacco stocks in India
- Regulations
Governments are enforcing stricter rules on tobacco products. Consider the regulatory changes affecting the industry and possible threats to profits.
- Market demand
Tobacco use is dropping at concerning levels in many nations. Therefore, before investing in tobacco stocks, you should consider the market demand for tobacco goods and how it can affect the company’s earnings.
- Stiff competition
The tobacco sector faces fierce rivalry from both – domestic and foreign companies. Therefore, before investing in tobacco stocks, you should consider the company’s market share and its strategy for the future.
- Financial health
You should review the business’s financial performance, like quarterly reports to evaluate the performance of tobacco companies. Key parameters like sales, profitability, amount of debt, and cash flow will clearly show the company’s financial health. If you want to stay invested long-term, consider the company’s history of dividend payments and the potential for future expansion.
- Ethical aspect
Investing in the tobacco industry can fill you with ethical dilemmas. Due to the health dangers of tobacco smoking, many investors resist investing in the tobacco industry, irrespective of its potential.
Conclusion
The regulatory atmosphere impacting the potential of the tobacco industry and the increasing control by governments over tobacco products globally cause concern. Furthermore, tobacco usage is declining due to greater awareness and health concerns, posing a challenge for the industry.
Therefore, weighing the potential risks against the rewards is essential while evaluating tobacco company stocks as an investment opportunity. Careful analysis and a long-term perspective are necessary to make informed investment decisions.
FAQs
Which tobacco company in India paid the highest dividend last year?
VST Industries Ltd paid a dividend of Rs. 140 per share in FY 2022.
Is it safe to invest in tobacco companies in India?
If you are concerned about the matter’s legality, investing in the tobacco industry is safe.
How much does tobacco contribute to the Indian economy?
Tobacco significantly contributes to India’s foreign exchange earnings, accounting for 4% of the country’s total agri exports, with an annual contribution of Rs. 4,400 cr.
As an insatiable reader and learner, I’ve spent the last two years exploring the world of finance. With my creative mind and curious spirit, I love making complex finance topics easy and fun for everyone to understand. Join me on my journey as we navigate the world of finance together!
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