Best Tobacco Stocks to Buy – Compare Top 10 Tobacco Shares to Buy in India

An important commercial crop no doubt, this industry generates shares that are highly profitable and thus investors get to choose from a wide catalog of Tobacco Stocks to buy.

Therefore, this article will highlight the Top 5 Tobacco Shares to buy in India.

Tobacco Sector continues to be an important economic platform for India, the country being the second-largest producer and dominant exporter of tobacco.


Top 5 Tobacco Stocks to Buy in India – List of Best Tobacco Shares to Buy

RankTop 10 Stocks
1ITC
2VST Industries
3Godfrey Phillips
4Kothari Products
5Golden Tobacco

Globally, Tobacco is one of the most economically important crops, and in India, it is produced on a large scale.

Tobacco Stocks to BuyMainly produced in the southern parts of the country in states like Karnataka and Andhra Pradesh because of the favorable climate the shares coming from the various tobacco companies is equally profitable in the market.

The Top 5 Tobacco Stocks in the share market currently are those of ITC Ltd., VST Industries Ltd., Godfrey Phillips India Ltd., Kothari Products Ltd., and Golden Tobacco Ltd. These companies have managed to monopolize the tobacco sector and have huge profit margins.

So an investor who is willing to invest in these tobacco shares must have in-depth knowledge about the Best Tobacco Stocks to Buy to get maximum returns.


ITC Ltd. – Best Tobacco Shares to buy in India

The first company in the list of the Best Tobacco Shares to buy in India goes to ITC limited. This company has been in the market for a long period and has been one of the leading industries for tobacco products.

An established name in the tobacco sector globally, ITC started its journey in 1910 as the Imperial Tobacco Company of India Limited.

Expanding its business rapidly since the time of its establishment, the company, as of now, is known as ITC Limited.

The shares of the company have risen over the years and currently, its total market capitalization is estimated at Rs. 225378.06 crores.

This Indian multinational conglomerate’s headquarters is located in Kolkata, West Bengal. It is a major contender in the Indian market.

The main cigarette brands manufactured by ITC are Wills Navy Cut, Insignia, Flake, Gold Flake Kings, Gold Flake Super Star, Gold Flake Premium lights, India Kings, Silk Cut, Capstan, Berkeley, Bristol, 555,  Scissors, Players, Lucky Strike, Royal, wave, Duke and Classic (Menthol, Menthol Rush, Ice Burst, Mild, Ultra Mild, Citric Twist, Verve and Regular).

The company has managed to turn back its 52weeks low of 134.60 into a prominent 52weeks high of 266.30. With the profit margin rising each year, ITC shares a dividend of 5.54 % with the shareholders.


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VST Industries Ltd. – Top Tobacco Stocks to buy in India

VST Industries Ltd comes next as one of the major contenders in the Indian tobacco market. What makes VST Industries one of the Best Tobacco Stocks to buy is its stronghold over the market and its production value.

This company which started in the 1930s is now one of the leading manufacturers and distributors of cigarettes and unmanufactured tobacco in India and has been performing excellently in terms of revenues and shares.

Starting as Vazir Sultan Tobacco Company, VST is headquartered in Hyderabad and has a huge net worth of around Rs. 5468.29 crores.

With big turnovers every year and the net production increasing steadily, the company is sure to yield more and more profits in the coming days.

This public conglomerate company manufactures and distributes some of the most famous cigarette brands in the country like Charminar, Gold, Editions, Charms, Moments, and Total.

Statistically, the second biggest manufacturer of cigarettes in India, VST’s shares, has shown a big leap from its 52weeks lowest of 2536.05 to a 52weeks high of 4848.00.

The company also operated through its highly capable subsidiaries – Hallmark Tobacco Company Pvt Ltd, Storage & Leasing Company Pvt Ltd (VDSL), Tobacco Diversification Investments Pvt Ltd (TDIL), and VST Distribution.

VST operates through its manufacturing facilities which are located in Hyderabad and Toopran.

The company’s long presence and steady development in the market have managed to attract a big number of investors who receive a dividend share of 2.91% from the company.


Godfrey Phillips India Ltd. – Most Traded Tobacco Shares in India

The third position in the list of Most Traded Tobacco Shares in India is acquired by Godfrey Phillips India Ltd. or GPI. This company has a large market base not only in India but also abroad.

Originally started as ‘Godfrey Phillips’, the company was then headquartered in London.

From its beginning in 1844, the company has been a major game-changer in the history of the tobacco industry and became the first UK Company to start mass production of cigarettes.

With a net market capitalization of estimated Rs. 4888.47 crores, GPI is one of the main contenders in the tobacco market of the country.

Currently owned by the Modi Enterprises, GPI is headquartered in New Delhi and is one of the leading manufacturer and seller of cigarettes alongside cigars and smoking tobacco.

Some of the well-known cigarettes manufactured by GPI are Cavanders, Four Square, Red & White, Stellar, North Pole, and Tipper.

The company also manufactures and sells Marlboro in the country through a license agreement with Philip Morris.

The company has successfully ditched its 52weeks low of 732.00 and has reached a 52weeks high of 732.00 because of good performance.

Besides cigarettes, GPI has also invested in pan masala, chewing, and confectionery products with Pan Vilas pan masala being the latest addition.

The shares of this company are doing pretty good and the investors are receiving a dividend of 2.55 % from the company.


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Kothari Products Ltd. – Top 10 Tobacco Stocks to buy

Kothari Products Ltd or KPL is another Indian tobacco manufacturing company that is considered another prominent name in the countdown of the Top 5 Tobacco Stocks to buy.

A relatively new addition in the tobacco sector is no less in overall performance than other companies.

Established in 1983, KPL is a subsidiary of the Kothari Group and is the market leader in terms of Pan Masala and Gutkha manufacturing.

Known globally and with a strong presence in many foreign markets, the company produces and exports Pan Parag Pan Masala, Gutkha, and Parag Zarda.

With a good performance in the share market, the total market capitalization of KPL is estimated at around Rs. 186.67 crores. The company is headquartered in Kanpur.

KPL operates through several Pan Masala and Gutkha plants scattered within the country in places like Kanpur and Noida in Uttar Pradesh and Jorhat in Assam.

It also owns beverage plants in Kanpur, Thane in Maharashtra, and Nadiad in Gujarat.

According to market analysis, the 52weeks low of this company was recorded at 28.75 which later climbed up to a 52weeks high of 104.95.

The company has good foreign trade links and its products are exported to countries like Australia, Japan, Kenya, South Africa, Singapore, Mexico, Canada, U.K, New Zealand, Middle East, Thailand, Malaysia, etc. KPL holds profitable shares and hence the investors are provided with a dividend of 0.00%.


Golden Tobacco Ltd. – Best Tobacco Shares in India

The ultimate position in this list of Best Tobacco Shares to buy is seized by Golden Tobacco Ltd.

This subsidiary of the Dalmia Group has expertise in cigarette making and is involved in the manufacturing and marketing of cigarettes and processed tobacco.

The total market capitalization of Golden Tobacco is around Rs. 40.06 crores and it has done wonders in the market because of high productivity.

The efficient manufacturing facilities of this company located in Mumbai and Vadodara produces various kinds of cigarettes like full flavor, menthol, light, ultralights, menthol lights, and extra menthol lights.

Golden Tobacco also owns a high-class printing press for packaging of its products and this systematic production has helped this company to be ranked among the best tobacco establishments in the country.

The list of the various kinds of cigarettes manufactured by Golden Tobacco includes well-known names like Panama Mini Kings Special, Panama Filter, Gold Flake Filter, Panama Menthol, Taj Chhap Deluxe, Chancellor Blue, and Chancellor Exclusive Filter to name a few.

The company also produces slim cigarettes such as June Slim, June Super Slim, Lips, and cigars like Just Black and June Slim Cigars. The 52weeks low and high of Golden Tobacco were recorded at 18.60 and 40.95 respectively.

Actively involved in the exportation of tobacco products, this company exports cigarettes and cigars brands like Flair and Esquire to places such as Europe, the US, Singapore, Russia, Japan, and Cambodia.

Shareholders receive a dividend of 0.00% from Golden Tobacco.


Tobacco Stocks to Buy – Conclusion

Therefore, this article sheds light on the top 5 Tobacco Stocks to buy in the country currently.

Monopolized by these five companies, the shares are yielding outstanding results and investing is these stocks guarantee a good profit.

Hence, investors who are willing to invest in the tobacco sector should assess these top Tobacco Shares to buy carefully to get the best returns possible.


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