The shares of this tobacco company gained up to 17 percent after the company announced plans to consider an issue of bonus shares at its upcoming board meet.
With a market capitalization of Rs 7,336.46 crore, the shares of Vst Industries Ltd were trading at Rs 4,751.00 per share, which increased drastically by around 16 percent as compared to the previous closing price of Rs 4,125.95 apiece.
Reason for rise:-
Today, the shares of the company showed such a bullish movement after Vst Industries Ltd’s board of directors considered the issue of a bonus at its board meeting on July 25, this is the first time the company to considered a bonus issue of share.
Financial condition:-
Looking forward to the company’s financial performance, revenue jumped by 24 percent from Rs 302 crore in Q4FY23 to Rs 375 crore in Q4FY24, however during the same period time, net profit magnified by 27 percent from Rs 69 crore to Rs 88 crore.
Ace investor:-
As of June 2024, ace investor Radhakishan S Damani with its company Derive Trading and Resorts Pvt. Ltd. and Bright Star Investments Pvt. Ltd., hold 53.51 lakh equity shares which is equivalent to 34.66 percent in the company.
Ratio analysis & facility:-
Vst Industries operates with 2 factories and 6 regional offices. It consumes 4,955 tonnes of tobacco as raw materials, also in FY23, the company invested Rs. 76 crore(0.45% of its Gross Turnover) in R & D.
The company’s profitability measures show a decline in return on equity (RoE) from 27.71 percent in FY 22-23 to 24.07 percent in FY 23-24, while, during the same period return on capital employed (RoCE) declined from 35.70 percent to 30.97 percent. In contrast, the net profit margin (NPM) was 21.23 percent in fiscal year 23-24.
Shareholding pattern:-
VST Industries Ltd’s recent shareholding pattern, The Promoters of the company own 32.16 percent while Retail shareholders own a 53.00 percent stake in the company, and Foreign Institutional Investors own a 1.83 percent stake.
Company profile:-
VST Industries Limited manufactures and trades cigarettes and tobacco products. The Company operates in the Tobacco and Related Products segment. The company offers several brands, including Total, Editions, Charms, Special, Moments, Total Active Mint, and Total Royal Twist.
Written by:- Abhishek Singh
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