Mehabe score: 3 G Factor: 5 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 6.
Description
VST Industries is engaged inter-alia in manufacture and trading of Cigarettes, Tobacco and Tobacco products.(Source : 202003 Annual Report Page No: 93) Site:VSTIND Main Symbol:VSTIND
Stock trades at 3220.0, above its 50dma 3207.29. However it is trading below its 200dma 3335.85. The stock remains weak though short term bullish momentum supports price action. It needs to close above 3335.85 for bullish price action to continue
The 52 week high is at 3895.00 and the 52week low is at 3035.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
-Stock is providing a good dividend yield of 3.54%.
– has a good return on equity (ROE) track record: 3 Years ROE 38.04%
– has been maintaining a healthy dividend payout of 57.87%
Weakness
– The company has delivered a poor sales growth of 4.70% over past five years.
-Promoter holding is low: 32.16%
Competition
– The industry trades at a mean P/E of 16.3x. Golden Tobacco trades at the industry’s max P/E of 32.46x. VSTIND trades at a P/E of 16.2x
– Industry’s mean G-Factor is 3.8 while the mean Piotski score is 7.0. VSTIND has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is -0.7%. The max 1- month return was given by VST Industries: a return of 5.66 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 329.0 cr compared to Rs 287.0 cr for period ended Dec 2020, a rise of 14.6% .
vis-vis 100.0 for period ended Dec 2020 .
Operating Margins contracted -171.3 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 109.0 cr for period ended Dec 2021 and operating profit margin at 33.1 % for same period.
The EPS for quarter ended Dec 2021 is Rs 53.57 compared to Rs 51.73 for previous quarter ended Sep 2021 and Rs 47.73 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1154.0 cr for period ended TTM vis-vis sales of Rs 1111.0 cr for the period ended Mar 2021, a growth of 3.7%. The 3 year sales cagr stood at 1.6%.
Operating margins shrank to 35.0% for period ended TTM vis-vis 37.0% for period ended Mar 2021, contraction of 200.0 bps.
Net Profit reported at Rs 306.0 cr for period ended TTM vis-vis sales of Rs 311.0 cr for the period ended Mar 2021, falling 1.6%.
Company recorded a healthy Net Profit CAGR of 10.5% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 36.0% compared to 38.0% over the last 3 Years. – The stock has given a return of -14% on a 1 Year basis vis-vis a return of 0% over the last 3 Years. – The compounded sales growth on a TTM bassis is 3% vis-vis a compounded sales growth of 5% over the last 3 Years. – The compounded profit growth on a TTM basis is -1% vis-vis a compounded profit growth of 20% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 1.81% vis-vis 2.14% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 49.55% vis-vis 49.31% for Sep 2021
Conclusion
– is almost debt free.
-Stock is providing a good dividend yield of 3.54%.
– has a good return on equity (ROE) track record: 3 Years ROE 38.04%
– has been maintaining a healthy dividend payout of 57.87% – The company has delivered a poor sales growth of 4.70% over past five years.
-Promoter holding is low: 32.16%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 3207.29 and is trading at 3220.0, thus bullish price action wise.
