India is the world’s second-largest producer and third-largest exporter of tobacco. The tobacco business employs 46 million people. And the industry is attracting attention from investors to capitalize on the projected growth of tobacco stocks.
A debt-free firm is one that has no debt or external borrowing. A debt-free company is one that is completely self-sufficient and has no outstanding loans.
Here are two debt-free Tobacco stocks
VST Industries Ltd
VST Industries Ltd belongs to the mid-cap stock, with a market capitalization of Rs 5,404 crore. On Thursday, Company shares were trading at Rs 3,500 up 0.02 percent from the previous close price. The stock has risen 16 percent in the previous six months and 6 percent in the year to date.
The company has a debt-to-equity ratio of zero. VST Industries financial indicators show that the return on capital employed at 35.70 percent and a return on equity at 27.71 percent. Similarly, the operating margin is 33.18 percent, while the net profit margin is 25.29 percent.
VST Industries reported an 11 percent increase in sales to Rs 333 crore in Q1FY24, compared to Rs 300 crore in the previous year’s equivalent quarter (Q1FY23), but its net profit decreased by 4 percent to Rs 83 crore in Q1FY24, from Rs 87 crore in Q1FY23.
VST Industries Ltd is a tobacco and associated products business. The company’s product line comprises cigarettes, unmanufactured tobacco, chopped tobacco, and various paper and paper board items. The company’s primary brands include Charminar, Charminar Special Filter, and many others.
Godfrey Phillips India Ltd
Godfrey Phillips India belongs to the mid-cap stock, with a market capitalization of Rs 11,508 crore. On Thursday, Company shares were trading at Rs 2,223.00, up 2 percent from the previous close price. The stock has risen 21 percent in the previous six months and 80 percent in the last year.
The company has a debt-to-equity ratio of zero. Godfrey Phillips India’s financial indicators have greatly improved, with the return on capital employed increasing from 18.36 percent to 20.82 percent and the return on equity increasing from 14.96 percent to 19.46 percent. Similarly, the net profit margin is 17.03 percent, while the operating margin is 22.96 percent.
Godfrey Phillips India reported a 50 percent increase in sales to Rs 1,245 crore in Q1FY24, compared to Rs 827 crore in the previous year’s equivalent quarter (Q1FY23), but its net profit increased by 68 percent to Rs 220 crore in Q1FY24, from Rs 131 crore in Q1FY23.
Godfrey Phillips India is one of the leading FMCG Companies, which manufactures many iconic cigarette brands like Four Square, Red & White, and Cavanders and distributes the renowned Marlboro brand.
Written by Omkar Chitnis
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