Best Tobacco Stocks in May 2025 - ITC, Godfrey Phillips, VST & More – 5yr CAGR Basis

Tobacco stocks in India have been gaining renewed interest, backed by export performance and supportive government initiatives. Over the past five years, India's tobacco exports have surged by 87% in value terms, from ₹6,408.15 crore in 2019-20 to a record ₹12,005.89 crore in 2023-24. Check the best tobacco stocks in India in May 2025 based on 5yr CAGR and other parameters.

Best Tobacco Stocks in May 2025 – 5yr CAGR Basis

Note: The best tobacco stocks in India in May 2025 listed here are as of May 9, 2025. The stocks are selected with the market cap more than ₹1,000 crore and are sorted based on 5yr CAGR.

Overview of the Best Tobacco Stocks in May 2025

1. Elitecon International Ltd

Elitecon International Ltd is involved in the business of tobacco and related products. For the nine months ended 31st December 2024, the total income stood at ₹17,879.80 lakh, a significant increase from ₹1,259.08 lakh recorded in the corresponding period of the previous year. The company's profit stood at ₹1,999.89 lakh, compared to a loss of ₹152.20 lakh in the same period last year.

Key Metrics:

• ROCE: 7.01%

2. Godfrey Phillips India Ltd

Godfrey Phillips India, the flagship company of the KK Modi Group, is a prominent player in the Indian FMCG sector. It is known for its iconic cigarette brands such as Four Square, Red & White, and Cavanders. For the nine months ended FY25 (9M FY25), Godfrey Phillips India recorded a net revenue of ₹4,146 crore, reflecting a 20.1% year-on-year growth compared to ₹3,453 crore in 9M FY24. The gross profit for the period stood at ₹1,755 crore, up 16.8% from ₹1,502 crore in the corresponding period of the previous financial year.

Key Metrics:

• ROCE: 24.22%
• ROE: 22.66%

3. ITC Ltd

ITC is the leading manufacturer and distributor of cigarettes in India. In Q3 FY25, ITC reported a net revenue of ₹17,726 crore, registering an 8.6% year-on-year increase from ₹16,326 crore in Q3 FY24. The company's profit after tax also saw a slight uptick of 1.2%, rising to ₹5,638 crore from ₹5,572 crore in the same quarter last year.

Key Metrics:

• ROCE: 34.87%
• ROE: 28.33%

4. VST Industries Ltd

VST Industries is involved in the manufacture and trading of cigarettes, tobacco, and related tobacco products. For the year ending March 31, 2025, VST Industries reported a total income of ₹1,84,424 lakh, compared to ₹1,91,710 lakh in the previous year. The company’s profit after tax for FY25 stood at ₹29,040 lakh, slightly down from ₹30,157 lakh in FY24.

Key Metrics:

• ROCE: 29.01%
• ROE: 24.80%

Best Tobacco Stocks in May 2025 – Net Profit Margin Basis

Note: The best tobacco stocks in India in May 2025 listed here are as of May 9, 2025. The stocks are selected with a market cap of more than ₹1,000 crore and are sorted based on net profit margin.

Best Tobacco Stocks in May 2025 – Return on Investment Basis

Note: The best tobacco stocks in India in May 2025 listed here are as of May 9, 2025. The stocks are selected with a market cap of more than ₹1,000 crore and are sorted based on return on investment.

Also Read: Best Long-Term Stocks in May 2025 – 5yr CAGR Basis! 

Conclusion

While stocks may present lucrative opportunities, investors should carefully assess their individual financial goals and risk appetite before making any investment decisions. It’s essential to align stock picks with long-term investment objectives and market outlook to make informed choices.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.