Declining Free Cash FlowA recent drop in free cash flow, even with positive operating cash generation, limits the company's ability to fund buybacks, higher dividends, or discretionary investments. If persistent, weaker FCF constrains financial flexibility and raises refinancing or liquidity risk over months ahead.
Regulatory And Tax VulnerabilityTobacco businesses face structural exposure to excise, GST and tightening health regulations that can reduce volumes or force price moves. These policy-driven shifts are persistent and can unpredictably compress demand and margins, posing a lasting headwind to revenue stability.
Product Concentration And Input Cost RiskHeavy reliance on cigarette sales and commodity inputs concentrates revenue and margin risk. Volatile tobacco and packaging costs can erode margins quickly, and limited product diversification leaves profitability sensitive to input inflation and changing consumer or regulatory trends.