Tobacco Stocks

Tobacco sector stocks are the shares of companies involved in the production, distribution and sale of tobacco products. Their offerings include cigarettes, cigars, oral tobacco pouches and vapes. These stocks represent large, well-established companies such as ITC Ltd, Godfrey Phillips, Indian Wood Products and VST Industries. Their performance depends upon factors like government regulations, taxation policies and consumer trends.

You can invest in tobacco sector stocks through the Upstox app:

● Open an account: Complete KYC and create an account on Upstox. ● Deposit funds: Add money to your trading account. ● Research stocks: Look for tobacco companies using Upstox’s search tools. ● Buy stocks: Place a buy order for your chosen stock. ● Track investments: Monitor your portfolio and adjust as needed. ● Sell as you need: Sell stocks by placing a sell order on the platform.

The sector is highly regulated due to the potential health risks associated with the products. Companies that are slow in adapting to changing consumer trends are likely to struggle with growth rates. High taxation by the government on tobacco products can put pressure on profit margins. Growing social trends towards adopting healthier lifestyles is a long-term challenge for the sector. The rise of illegal or unregulated tobacco products can impact legitimate companies.

Tobacco stocks are ideal for investors who are seeking returns from a growing sector with stable companies in the long run. These stocks can offer strong returns, but they come with a risk-reward profile due to factors like regulatory changes. Investors with a higher risk tolerance, who are looking to diversify their portfolio, may find this sector attractive. Tobacco stocks are considered defensive assets due to their historically stable demand but may not appeal to those who prioritise ethical investing.

There are many benefits of investing in the tobacco sector stocks like:

• Demand-driven growth: Tobacco companies often offer steady growth, driven by stable demand.

• Diversification: Adding tobacco stocks to a portfolio can provide diversification to the portfolio. These stocks are also appealing for their ability to withstand market volatility as they tend to perform differently from other sectors.

• Dividend: Many tobacco companies pay dividends, offering regular income to investors.

• Global reach: The strong global presence offers high growth potential for the companies in the sector.

Largest Tobacco sector company is ITC LTD with a market capitalization of ₹514426.60.

Today's Top gainers in Cigarettes/Tobacco sector are:

GODFREY PHILLIPS INDIA LT (0.97%)

Today's Top losers in Tobacco sector are:

VST INDUSTRIES LTD (-0.85%)

ITC LTD (-0.22%)