Hold VST Industries, target price Rs 3300: ICICI Direct

ICICI Direct has hold call on VST Industries with a target price of Rs 3300. The current market price of VST Industries is Rs 3072.65. Time period given by analyst is 12 months when VST Industries price can reach defined target.


VST Industries, incorporated in the year 1930, is a Mid Cap company (having a market cap of Rs 4807.46 Crore) operating in Tobacco sector.

VST Industries key Products/Revenue Segments include Tobacco Unmanufactured, Scrap and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 457.95 Crore, down -3.10 % from last quarter Total Income of Rs 472.62 Crore and up 3.80 % from last year same quarter Total Income of Rs 441.18 Crore. Company has reported net profit after tax of Rs 78.98 Crore in latest quarter.

The company’s top management includes Mr.Naresh Kumar Sethi, Mr.Aditya Deb Gooptu, Mr.S Thirumalai, Ms.Rama Bijapurkar, Mr.Sudip Bandyopadhyay, Mr.Rajiv Gulati. Company has BSR & Associates LLP as its auditors. As on 31-12-2022, the company has a total of 2 Crore shares outstanding.

Investment Rationale
The brokerage slashes its EPS estimate by 6% & 5% for FY23E & FY24E, respectively, as the company is losing market share due to its insignificant presence in high priced cigarettes segment.