Cigarettes hazardous for health, but good for investment!

There are five stocks currently listed on the bourses which are in the business of manufacturing cigarettes. Godfrey Phillips India, Golden Tobacco, ITC, NTC Industries and VST Industries are amongst the five and you'll be surprised to know that of these five, three companies have given a return of more than 24 per cent over the period from 1 June- 23 Dec., 2016.

After China, India is the second largest tobacco producer and exporter in the world. The industry generates a significant share of the country’s excise duty and state taxes, amounting to more than Rs 30,000 crore annually. Therefore, from an investing point of view, the industry could be profit churner, subject to government policies in the future.

Golden Tobacco in the last six months has given a return of 49.14 per cent, followed by VST and NTC Industries which have surged by 34 and 24 per cent, respectively. The two loss-making listed entities are Godfrey Phillips and ITC, which are down by five per cent and seven per cent, respectively. The sector may be black collared, but it can be certainly considered from an investment perspective.