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    Buy VST Industries, target price Rs 4048: Centrum Broking

    Synopsis

    VST Industries Ltd., incorporated in the year 1930, is a Mid Cap company (having a market cap of Rs 5095.83 Crore) operating in Tobacco sector.

    BuyGetty Images
    Promoters held 32.16 per cent stake in the company as of 30-Jun-2022, while FIIs owned 1.84 per cent, DIIs 16.62 per cent.
    Centrum Broking has buy call on VST Industries with a target price of Rs 4048. The current market price of VST Industries Ltd. is Rs 3295.7. Time period given by analyst is one year when VST Industries Ltd. price can reach defined target.

    VST Industries Ltd., incorporated in the year 1930, is a Mid Cap company (having a market cap of Rs 5095.83 Crore) operating in Tobacco sector.

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


    Financials
    For the quarter ended 30-06-2022, the company reported a Standalone Total Income of Rs 413.18 Crore, up 29.07 % from last quarter Total Income of Rs 320.12 Crore and up 45.18 % from last year same quarter Total Income of Rs 284.60 Crore. Company reported net profit after tax of Rs 87.14 Crore in latest quarter.

    Investment Rationale
    VST is credited with 50% board members are independent directors and 17% are female. Though market uncertainty pushed VST to hold more cash and cut dividend pay-out to 68% is a concern for investors, we expect the pay-out/ buy-back picking up steam. It believes growing demand for value segment could provide strong tailwinds to VST. It largely retain BUY rating with revised DCF-based TP of Rs4,048 (16.8x FY24E EPS). Risks to call include sharp increase in any form of taxation and disruption in supply chain due to lockdowns.

    Promoter/FII Holdings
    Promoters held 32.16 per cent stake in the company as of 30-Jun-2022, while FIIs owned 1.84 per cent, DIIs 16.62 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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