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

Last Updated Date - Mar 21, 2023

The Tobacco Industry has been well-liked among investors for much of its history. The Industry is famous for its recession-proof products.

This gives a solid reason why tobacco companies in India are always profitable in the end. Despite the fact that tobacco companies continue to face a new set of challenges, investors are still addicted to tobacco stocks.

After all, the industry has been bringing us the best tobacco stocks to buy for a long time. If you, too, are on the best tobacco stock hunt, read on.

This article brings you major stocks from the tobacco industry that are worth considering if you too find this sector more profitable than others.

Know About Tobacco Sector in India

Keep searching for top tobacco sector stocks to buy as the Industry is so huge that it is going nowhere else for the next couple of decades.

Presently, the Industry contributes approximately Rs 11,79,498 crore to the Indian economy.

Moreover, an estimated 4.57 crore people are engaged directly in the tobacco business. Mainly are employed exclusively in the tobacco industry with no second income source.

A maximum of them are big taxpayers; that’s why top tobacco companies in India are expected to thrive for many years onwards.

Top 7 Tobacco Stocks to Buy in India - List of Best Tobacco Shares to Buy

Top 7 Tobacco Stocks to Buy in India – List of Best Tobacco Shares to Buy

Here in the table, you can see seven tobacco companies in India generating impressive returns on investment over the past few years.

All these good names currently fall into the category of the best tobacco shares in India you can make a bid on.

After all, each share has its own unique identity and a solid brand-building to back its growth potential in the stock market. But make sure you aren’t making any mistake with considering cigarette companies’ shares to buy.

By the end of the discussion, we have covered a helpful summary on how to find, trade, and invest in tobacco stock. Before, let’s summarize those best stocks dominating in this particular market.

ITC Ltd. – Best Cigarette Stocks in India

Let’s begin this review of the best tobacco stocks with our first-mover ITC Ltd. However, it would be much better if we call it the best cigarette stocks in India.

ITC Ltd. - Best Cigarette Stocks in India

After all, the company is a market leader in cigarettes in India. Set up in 1910, ITC Ltd is, however, not just a favorite tobacco company but a famous FMCG firm too.

To simply put, the company follows a diversified business model and, in addition to tobacco products, it is renowned for its myriad of brands created in diverse niches.

But if we talk exclusively about the cigarette business of ITC Ltd, it is unstoppable. ITC’s state-of-the-art cigar manufacturing unit produces millions of cigars daily, making it one of the top-rated picks in this list.

Products or Services

These are the major products ITC Ltd manufactures in the cigarette and cigar business segment –

  • Insignia
  • India Kings
  • Classic
  • Gold Flake
  • American Club
  • Scissors
  • Wills Navy Cut
  • Players
  • Capstan
  • Duke & Royal etc.

Why invest in ITC Ltd?

Let’s share in-depth info on one of the top tobacco shares to buy.

The share for a long time has been an excellent name to investors when it comes to tobacco shares. After a steep fall at the start of 2020, the share creates a great BUY zone for investors.

Currently, the company’s prices float between 200 to 250 price levels, whereas the history of the stock depicts that ITC Ltd even broke the levels of 300 and 350 back in 2017-2018.

However, the share has already recovered a lot from its lifetime low reported as of May 8, 2020, around 150 price levels. Without a doubt, a huge opportunity is available ahead.

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Godfrey Phillips Ltd. – Top Tobacco Stocks in India

Godfrey Phillips Ltd is also not far from achieving a notable spot in the list of top tobacco stocks in India. The second most popular stock is famous for its tobacco manufacturing. Godfrey Phillips Ltd. - Top Tobacco Stocks in India

Set up in 1844, Godfrey Phillips Ltd became one of the oldest Tobacco manufacturing companies in the nation.

However, the firm is a subsidiary of a London-based corporation and that too is a big scale producer of cigarettes in the UK.

And when a big global player backs a share in India, results are always desirable. The company is top-rated for its manufacturing and selling of cigarettes, smoking tobacco, and cigars products.

However, the brand also builds its reputation across non-tobacco product lines. In a nutshell, it could be an excellent pick from an investment perspective.

Products or Services

Let’s explore some major products and services served by Godfrey Philips Ltd in the tobacco market –

  • Cigars
  • Cigarettes
  • Smoking Tobacco

Why invest in Godfrey Phillips Ltd?

All the way from the list of best cigarette shares to buy, Godfrey Phillips Ltd establishes itself on a notable spot.

The company is popularly known for its niche market segment tobacco products that it produces in colossal varieties and flavors.

However, owing to highly volatile share prices, the company has become popular among day traders.

As of March 16, 2022, the company’s share value is reported at 1,021, which sometimes goes up to 1,400 when the company enjoys incredible profitability in the sector.

Altogether, Godfrey Phillips Ltd has all those essential traits that make this stock renowned among the best picks for your portfolio.

VST Industries Ltd. – Top Tobacco Sector Stocks 

VST Industries Ltd is one of the most popular conglomerate companies. The Hyderabad-based corporation has been one of the leading manufacturers and suppliers of cigarettes.

VST Industries Ltd. - Top Tobacco Sector Stocks 

And beyond a doubt, one of the top tobacco sector stocks now. The company is an associated firm of a British American Tobacco Group. Also, a few other companies as well own a stake in the company.

But this isn’t a drawback; together with a team of partners, the company for long has been winning the tobacco industry by expanding its product’s supplies to a broad market.

Founded in 1930, the company has now turned into a top-rated choice for investors willing to include a tobacco share in their portfolios.

By the end of the financial year 2021, the company adds a 2.20% hike in its net income, showcasing the company’s highly profitable profile in the tobacco sector.

Products or Services

These are the products manufactured and supplied by VST Industries Ltd.

  • Cigarettes
  • Tobacco Unmanufactured
  • Scrap

Why invest in VST Industries Ltd?

Let’s unveil cigarette company share price and how it carries the vast potential to generate impressive returns. Over the past five years, the company’s share prices have increased by 8.81% only.

But it has been seen that share has generated returns whopping 71.09% within six months reported as of January 17, 2020.

In short, the company may not be that satisfying on the long-term horizon but can generate massive returns on short-term investment.

Day traders can discover hue opportunities built in the stock value as it follows a highly volatile price.

Kothari Products Ltd. – Top Tobacco Companies in India

Among the top tobacco companies in India, Kothari Products Ltd is cognized among the leaders. The firm is famous in the consumer market for its low prices of pouch-based tobacco products.Kothari Products Ltd. - Top Tobacco Companies in India

The technology adopted by the company and ingredients injected in tobacco products derive value to the products that Kothari Products Ltd manufactures.

From flavored chewing gum to powder, the company’s tobacco varieties have been enjoyed by people ever since the company entered the market.

Set up in 1983, in addition to its tobacco business, Kothari Products Ltd is engaged in international trade, real estate, and other investment sectors.

Altogether, the company gives ample reasons why investors should consider it in the public market.

Products or Services

Here’s a quick glimpse of the products manufactured by Kothari Products Ltd (KPL) in India –

  • Pan Masala & Gutkha
  • Pan Parag Pan Masala
  • Gutkha and Parag Zarda

Why invest in Kothari Products Ltd?

Let’s run a thorough talk on the tobacco share price. Kothari Products Ltd has been doing an impressive job in the share market. But recently, after the global pandemic, the company faced hefty downfalls.

The share creates a lifetime low on March 27, 2020, and soon jumps and generates 336.80% returns on investment within the span of 2 years.

As of March 17, the company’s prices were around 150 price levels. However, history depicts that share has even touched the price point above 200-230.

After a long time, the share keeps following a bullish trend; beyond a doubt, a great opportunity is ahead to celebrate.

The Indian Wood Pro Ltd. – Top Cigarette Stocks in India

Let’s hit a thorough discussion on the following best and one of the top cigarette stocks in India – the Indian Wood Pro Ltd.The Indian Wood Pro Ltd. - Top Cigarette Stocks in India

The company is widely known for its masalas and other natural extracted products, but when it comes to Tobacco, the company plays an integral role.

Set up in 1919, the company produces flavorful and refreshing ingredients widely used in chewing tobacco products.

In short, it serves the tobacco industry and transforms those addictive products into more flavorful and refreshing ingredients.

For a long time, the company has been enjoying stable returns in the financial market but faces a bit of backlash back in 2020 when the stock price falls down by a big percentage.

But opportunities are flourishing now, and the discussion ahead will explain it all.

Products or Services

These are the products designed and manufactured by Indian Wood Products Ltd.

  • Catechu
  • Cutch
  • Catechins
  • Kitchen Ingredients
  • Spices

Why invest in The Indian Wood Pro Ltd?

Let’s explore the tobacco share price to spot the best entry point for a buy for IWP Ltd. Indian Pro Ltd is one of the best penny stocks to buy in the tobacco sector.

After a steep fall in 2020, the share doesn’t consolidate and moves ahead following a stable price pattern. But right after 2021, the company’s share price increased by 135.50%, reported as of June 18, 2021.

It’s worth noting that the company’s lifetime high has even achieved a price range of 100.

Presently, the company’s share price is around 35 per share, which is pretty affordable. Beyond a doubt, the share has brought an ample opportunity to think about.

Golden Tobacco Ltd. – Best Tobacco Shares in India

All the way from the list of top 10 tobacco stocks, Golden Tobacco Ltd, deserves to be recognized. Set up in 1930, the company is now renowned among leaders in the tobacco sector.

Golden Tobacco Ltd. - Best Tobacco Shares in India

Since the company specializes in the tobacco business, it has clearly become a reputed name in the market.

Golden Tobacco Ltd. has always been a well-liked brand in the consumer market and seems to become a popular one for investors as well.

Year on year, the company stays profitable, except for the pandemic, which might have had a deep impact on its profitability, but the good thing is, the incident has created the best buy opportunity for investors.

Products or Services

  • Golden Tobacco Limited Cigarettes
  • Slim/Super Slim Cigarettes
  • Golden Tobacco Limited Cigars
  • Golden Tobacco Limited Cigarillos

Why invest in Golden Tobacco Ltd?

Back in Oct 2020, If you were a Golden Tobacco Ltd investor, you could have enjoyed a 645.91% return on investment. The cigarette share price has generated terrific returns over the last year.

However, the company’s prices have been disappointing over the past few years ever since the company followed a bearish trend in 2018.

But now, shares made a breakthrough into premium stock, leaving its penny stock category. The company enjoys impressive profitability in 2020 and once again has been doing a pretty great job in the stock market.

By the end of the financial year 2021, the company secures 76.30 million in income, almost 580% higher than the former year. This shows that Golden Tobacco Ltd is determined to become more robust in the market.

NTC Industries Ltd. – Top Tobacco Companies in India

In the end, we have NTC Industries Ltd remaining to be discussed in this list of top tobacco companies in India. Set up in 1991, the company has now turned into one of the reputed players in the tobacco industry.NTC Industries Ltd. - Top Tobacco Companies in India

The company has a rich history in supplying flavored and quality tobacco products worldwide.

Combining technology and high-quality ingredients formulations, the company creates perfectly blended cigarette products in a wide range of flavors and fragrances.

Apart from that, the company also manufactures Agarbati and matchbox, building its presence in a wholly different market as well.

Products or Services

  • Tobacco Products
  • Lifestyle Products

Why invest in NTC Industries Ltd?

The best cigarette stocks in India can never fail to live up to the hopes of people. The stock is one of those few tobacco stocks to catch a speedy upswing in its market prices.

After creating a lifetime low in 2020, the share generates a return of around 719.80% by the end of August 2021. The company astonishes investors with an incredible performance in the financial market.

Moreover, the company’s financial profile and balance sheet are also not hidden. The company will stay more profitable by the end of 2021, and much more have been predicted.

If you are also looking for the best tobacco stocks in the Industry, beyond a doubt, it is NTC Industries, ready to live up to your hopes.

How To Find Tobacco Stocks For Trading?

It can be incredibly tough to trade in tobacco stocks until you know precisely how to find a tobacco stock.

But before, it’s worth mentioning that nobody is dropping you behind the bars if you trade tobacco stocks. Trading these shares is legal, so feel free to invest your money in them.

But now comes the most crucial topic. How to find a tobacco stock? Well, the answer is straightforward. Figure out the best stock with research that you do for other stocks before trading.

Nevertheless, it is worthwhile to invest in a stock that isn’t notorious.

The tobacco industry name is spoiled for its addictive products, but not all companies are blamed for the same. Few companies produce products with respect to legal norms.

All the stocks we have covered in the list are trusted as they comply with the regulation imposed on tobacco products manufacturing and supply in the nation. Thus you can feel confident about the given options.

How To Invest In Tobacco Sector Stocks?

You can invest in tobacco sector stocks in a few easy steps. If you have done the research work, and are confident enough from a particular stock and company’s profile, proceed with the investment.

You can invest in tobacco stocks simply from a trusted broker. Figure out an excellent price at which you are comfortable buying shares. Similarly, once you figure out, spot the ideal entry point.

Try not to place stop-loss when holding a share for the long term unless you are much confident about the futuristic performance of the share.

Later on, you can execute investment activities and kick off your first investment round for a tobacco stock. Never rely on a single stock; keep your portfolio diversified, stuffed with stocks from multiple sectors.

Top Tobacco Companies in India – Conclusion

In the end, top tobacco companies in India are ready to multiply your savings. Tobacco companies, for a long time, have been well-flourishing and profitable firms.

However, the profitability is primarily driven by tobacco products that are recession-proof and more addictive in the consumer market.

Still, finding the best stock always comes with specific challenges that we have tried to reduce with the above list of best tobacco stocks. Review them, and make a fair investment deal.

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