Today, GPIL’s business revolves around cigarettes (the core business) and the production and sale of tobacco leaves. The company is also diversifying into the confectionery segment to reduce its dependence on tobacco products. NTC Industries Limited, often known as the prestigious ‘House of NTC’, is one of the most famous manufacturers of tobacco products in India. Established in September 1931 in Kolkata, the company has a rich history closely intertwined with the evolution of the Indian tobacco industry. NTC is well known for its strong manufacturing capability and commitment to high-quality standards. The company has played a crucial role in introducing various innovations to the Indian tobacco market, such as the first menthol-flavored cigarette and exclusive blends for women.
How to Identify Tobacco Stocks in India?
Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or scurities quoted (if any) are for illustration only and are not recommendatory. On metrics like dividend yield and valuation, British American Tobacco gets the edge. BAT trades at a yield of 9.5% and has a price-to-earnings valuation of just 6.7.
Most products manufactured by the tobacco industry participants fall under the strict vigilance of the U.S. Food and Drug Administration and are required to follow the permissible levels of nicotine in manufacturing. Players in this space sell products mostly through large retailers, distributors, convenience stores, drugstores, wholesalers and grocery chains. Some international tobacco firms also operate in the country through subsidiaries.
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NTC Industries’ other flavours include One8 dual flavour, Regent Black and Regent Flake. Additionally, it also exports products internationally to places like Rotterdam, Amsterdam, Brussels and Luxembourg. The company also operates in the confectionery business and trades unmanufactured tobacco. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
Additionally, it holds a licence agreement with Philip Morris to manufacture and distribute the iconic brand Marlboro. Reported income for the segment was also 13% higher year-over-year, driven by higher pricing and volumes, as well as operating leverage reducing relative expenses. Adjusted earnings-per-share for the company came to $1.23, up 13% year-over-over year. The core smokeable products segment saw revenue rise 8%, primarily from higher prices and shipment volumes, which were partially offset by higher promotional investment. Altria reported second quarter earnings on July 29, 2021, and results were better than expected on both the top and bottom lines.
Most Expensive Share in India
This dual strategy — aggressive RRP expansion and strategic pricing — positions the tobacco sector for resilient, long-term growth in an increasingly regulated and health-conscious marketplace. Leading tobacco companies — such as Philip Morris International Inc. The industry has historically been a lucrative business and generates consistent returns. However, with the growing focus on health, coupled with stringent regulations, the industry is facing challenges.
How is the e-cigarette market affecting traditional tobacco companies?
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NTC Industries Ltd is an Indian company primarily engaged in the manufacturing and trading of tobacco products, including cigarettes and smoking mixtures. The company focuses on quality production and operates in both domestic and global tobacco markets, contributing to India’s tobacco export sector. British American Tobacco (BAT), a behemoth in the tobacco industry, boasts a history stretching back to 1902. Headquartered in London, England, BAT has risen to become the world’s largest tobacco company by net sales as of 2021.
- However, its sales volume of heated tobacco units (HTUs) rose 11.9% in that same quarter, indicating that devices such as the IQOS have strong growth potential.
- In the ever-evolving tobacco cigarette business, savvy investors need strategies that not only navigate the current landscape but also anticipate future shifts.
- Our next stock is Altria, another manufacturer and distributor of cigarettes, smokeless tobacco, and tobacco alternative products in the U.S.
- The company is mainly focused on manufacturing and selling cigarettes.
- It seamlessly integrates with Excel and Google Sheets, making financial analysis a breeze.
Trends and News in the Tobacco Stock Market
Investors are hopeful that next-generation products will eventually catalyze stronger growth, and there are some signs that’s already happening. These negative trends have kept many investors away from tobacco stocks. However, tobacco stocks can still generate solid total returns given that they tend to offer high dividend yields. The main risk of investing in tobacco stocks in India is their vulnerability to stringent government regulations. These regulations can impact profitability, sales, and overall market dynamics, making the sector more susceptible to changes in public health policies.
- Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment.
- These negative trends have kept many investors away from tobacco stocks.
- The tobacco industry may be reviled by some, but it has been a big winner for investors for much of its history.
- This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance.
Nonetheless, the USA was the world’s fifth-largest producer of tobacco in 2021, harvesting 431.6 million pounds in 2022, compared to 1.74 billion pounds in 1997. Seventy-seven percent of U.S. production came from North Carolina or Kentucky. Sales of cigarette packs fell from 12.5 billion to 9.1 billion packs between 2015 and 2021, a 27% decrease. In 2024, the average cigarette tax in each state was $1.93, while the federal tax was $1.01.
Companies that promote unapproved products risk “civil and criminal penalties,” the FDA warned. Altria Group, Inc., an emblem of American corporate success, stands tall as one of the globe’s leading producers and marketers of tobacco, cigarettes, and related products. Since its split from Altria in 2008, the company has raised its dividend every year, and its dividend has increased by 194% as of June 2025. The stock also offers a healthy dividend yield of 3% of the share price. If its history as part of Altria were included, it would qualify as another Dividend King.
And that means the winner of this matchup is Best tobacco stocks British American Tobacco. These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts’ forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt.
Universal Corporation is a market leader in supplying leaf tobacco and other plant-based inputs to consumer product manufacturers. On an adjusted organic basis, revenues were up by 1.3%, but the company was negatively impacted by currency exchange rate movements. Its revenue from New Categories, which includes vapes and other non-smokable products, grew by a solid 9% on a currency-adjusted basis, relative to one year earlier. Total tobacco market share improved in three out of five top markets.
This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance. You must consider how these changes might affect the sector and impact potential earnings. Godfrey Phillips India’s retail chain, 24Seven, operates as a round-the-clock convenience store format with over 145 stores/kiosks across Delhi NCR, Punjab and Telangana. Expanding beyond cigarettes and tobacco, Godfrey Phillips India has entered into the competitive confectionery segment and retail business, broadening its product offerings. Founded in 1936, Godfrey Phillips India Limited, the flagship company of Modi Enterprises, is one of India’s largest FMCG companies. It is known for producing popular cigarette brands like Four Square, Red and White, Cavanders, Tipper, and North Pole.