The tobacco industry has been always a big winner for investors for much of its history. In the last few decades the tobacco stocks were among the best performer and highly profitable for investors. It’s been always a recession-proof product. Inspite of many criticism the sin stocks have always attracted the investment. And this is only because of the great potential in this type of products despite of many curbs placed by government.
1. Godfrey Phillips India
Godfrey Phillips India (GPIL), promoted in December 03, 1936 by Godfrey Phillips, London, has business presence in manufacturing of cigarettes, chewing products & tobacco products, trading of cigarettes, tobacco products, tea & other retail products, trading & distribution of vaping products, acquisition of securities and real estate development.
Fundamental Analysis:
Market Cap ₹ 5,874 Cr.
Debt ₹ 337 Cr.
ROE 15.9 %
Sales growth 6.42 %
Promoter holding 72.8 %
ROCE 19.3 %
Stock P/E 13.4
Industry PE 18.6
2. VST Industries
The Company is engaged in manufacture and trading of cigarettes containing tobacco and tobacco products. In 1990, the company entered the United Arab Emirates market, launching Kingston Mini Kings.
Fundamental Analysis:
Market Cap ₹ 4,916 Cr.
Debt ₹ 0.00 Cr.
ROE 31.7 %
Sales growth 6.05 %
Promoter holding 32.2 %
ROCE 42.4 %
Stock P/E 15.4
Industry PE 18.6
3. ITC
ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.
Fundamental Analysis:
Market Cap ₹ 371,422 Cr.
Debt ₹ 249 Cr.
ROE 24.8 %
Sales growth 23.1 %
Promoter holding 0.00 %
ROCE 33.6 %
Stock P/E 24.4
Industry PE 18.6