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Best Tobacco Stocks To Invest In India (2024)

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List of Tobacco Companies in India

Last Updated on Feb 14, 2024 by Harshit Singh

The tobacco companies in India have experienced exponential growth consistently over the years and have generated significant profits. Since the past year, many tobacco stocks have recorded double-digit growth, owing to the sheer size and demand in the tobacco industry. As the tobacco sector is forecasted to grow at a CAGR of 11.94% by 2028, here are the top tobacco companies in India that will benefit from it.

List of tobacco companies on NSE

Listed Tobacco CompaniesMarket Cap (Rs. in cr.)Close Price (Rs.)PE Ratio (%)
ITC Ltd5,07,712.79406.7526.45
Godfrey Phillips India Ltd13,423.79249119.44
VST Industries Ltd5,376.953507.8516.44
NTC Industries Ltd138.91126.7521.94
Golden Tobacco Ltd95.3552.512.50
Sinnar Bidi Udyog Ltd19.80485.145.00

Note: The data is from 13th February 2024. This list of top tobacco companies in India is derived using the following parameters on the Tickertape Stock Screener – 

  • Sector > FMCG > Tobacco
  • Market Cap: Sort from highest to lowest

Best tobacco shares in India (2024)

Tobacco SharesMarket Cap (Rs. in cr.)Close Price (Rs.)PE Ratio (%)1Y Return (%)
Sinnar Bidi Udyog Ltd19.80485.145.00125.37
NTC Industries Ltd138.91126.7521.9452.99
Godfrey Phillips India Ltd13,423.79249119.4448.18
VST Industries Ltd5,376.953507.8516.4418.04
ITC Ltd5,07,712.79406.7526.458.70
Golden Tobacco Ltd95.3552.512.50-13.22

Note: The data is from 13th February 2024. This list of best tobacco shares in India is derived using the following parameters on the Tickertape Stock Screener – 


  • Sector > FMCG > Tobacco
  • 1-yr Return: Sort from highest to lowest

Best tobacco companies in India for long-term

Tobacco CompaniesMarket Cap (Rs. in cr.)Close Price (Rs.)5Y CAGR (%)
NTC Industries Ltd138.91126.7528.20
Godfrey Phillips India Ltd13,423.792,491.0023.47
Sinnar Bidi Udyog Ltd19.80485.1017.67
ITC Ltd5,07,712.79406.758.00
VST Industries Ltd5,376.953,507.851.82
Golden Tobacco Ltd95.3552.50–

Note: The data is from 13th February 2024. This list of best tobacco companies in India is derived using the following parameters on the Tickertape Stock Screener – 

  • Sector > FMCG > Tobacco
  • 5-yr CAGR: Sort from highest to lowest

Highest dividend-yielding tobacco stocks in India

Tobacco StocksMarket Cap (Rs. in cr.)Close Price (Rs.)Dividend Yield (%)Dividend Per Share (Rs.)
VST Industries Ltd5,376.953507.854.31150
ITC Ltd5,07,712.79406.753.7915.5
Godfrey Phillips India Ltd13,423.7924911.7044

Note: The data is from 13th February 2024. This list of high dividend yielding tobacco stocks in India is derived using the following parameters on the Tickertape Stock Screener – 

  • Sector > FMCG > Tobacco
  • Dividend Yield: Sort from highest to lowest

Profitable tobacco companies in India

Tobacco CompaniesMarket Cap (Rs. in cr.)Close Price (Rs.)Net Profit Margin (%)5Y Avg Net Profit Margin (%)
ITC Ltd5,07,712.79406.7526.2826.07
VST Industries Ltd5,376.953507.8523.8924.11
Godfrey Phillips India Ltd13,423.79249117.9814.00
Golden Tobacco Ltd95.3552.5016.63-6.51
NTC Industries Ltd138.91126.7512.0820.62
Sinnar Bidi Udyog Ltd19.80485.106.29-1.45

Note: The data is from 13th February 2024. This list of profitable tobacco companies in India is derived using the following parameters on the Tickertape Stock Screener – 

  • Sector > FMCG > Tobacco
  • Net Profit Margin: Sort from highest to lowest

Top tobacco companies in Q4, 2024

Tobacco CompaniesMarket Cap (Rs. in cr.)Close Price (Rs.)Net Income (Q)
ITC Ltd5,07,712.79406.755,335.23
Godfrey Phillips India Ltd13,423.792,491.00212.35
VST Industries Ltd5,376.953,507.8553.72
NTC Industries Ltd138.91126.751.27
Sinnar Bidi Udyog Ltd19.80485.100.05
Golden Tobacco Ltd95.3552.50-1.55

Note: The data is from 13th February 2024. This list of top tobacco companies in India is derived using the following parameters on the Tickertape Stock Screener – 

  • Sector > FMCG > Tobacco
  • Net Income (Q): 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 are the best cigarette stocks in India?

The best cigarette stocks in India, based on 1-month return are – 
– Godfrey Phillips India Ltd
– NTC Industries Ltd

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.

Which tobacco company in India has the highest market capitalisation?

As of 13th February, 2024, ITC Ltd has the highest market capitalisation of Rs. 5,07,712.79.

Which cigarette stocks in India paid the highest dividend last year?

VST Industries Ltd paid a dividend of Rs. 140 per share in FY 2023.
Anjali Chourasiya
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