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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 509966 | NSE: VSTIND

Fundamental Analysis of VST Industries Ltd

Basic Stock Data

Last Updated: April 23, 2024, 11:33 am

Market Cap 6,111 Cr.
Current Price 3,961
High / Low4,328/3,159
Stock P/E21.7
Book Value 718
Dividend Yield3.79 %
ROCE38.0 %
ROE29.0 %
Face Value 10.0

Data Source: screener.in

Competitors of VST Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
ITC Ltd 5,31,724 Cr. 426500/39626.0 55.42.99 %39.0 %29.1 % 1.00
Industry Average531,724.00 Cr426.0026.0055.402.99%39.00%29.10%1.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales287278275272329303301344346302333350363
Expenses187180183167220196188251251220228271290
Operating Profit10098921041091061139395821057972
OPM %35%35%33%38%33%35%38%27%27%27%32%23%20%
Other Income9691010171133161612299
Interest0000000000000
Depreciation98678977788910
Profit before tax1009795107111115117119103901099971
Tax %26%25%26%26%25%24%26%22%24%23%23%23%24%
Net Profit74737080838787927969847654
EPS in Rs47.7347.1645.6251.7353.5756.4656.4359.6851.1544.4954.2049.1834.79

Last Updated: April 10, 2024, 5:20 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 9:19 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6846697898368839229481,0991,2391,1111,1781,2921,347
Expenses4754885715946466756547468257007679101,008
Operating Profit210180218243237248294353415411412383339
OPM %31%27%28%29%27%27%31%32%33%37%35%30%25%
Other Income26263218202025394742477666
Interest0000000000000
Depreciation25222732313739414235303036
Profit before tax211184224229227231279351420417428429369
Tax %32%31%33%33%32%34%35%35%28%26%25%24%
Net Profit143126150152153152182227304311320327282
EPS in Rs92.2981.7697.2498.5799.1598.13117.79146.90196.93201.26207.38211.75182.66
Dividend Payout %70%76%72%71%71%76%66%65%52%57%68%71%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-11.89%19.05%1.33%0.66%-0.65%19.74%24.73%33.92%2.30%2.89%2.19%
Change in YoY Net Profit Growth (%)0.00%30.94%-17.71%-0.68%-1.31%20.39%4.99%9.20%-31.62%0.59%-0.71%

Growth

Compounded Sales Growth
10 Years:7%
5 Years:6%
3 Years:1%
TTM:4%
Compounded Profit Growth
10 Years:11%
5 Years:13%
3 Years:2%
TTM:-18%
Stock Price CAGR
10 Years:8%
5 Years:2%
3 Years:5%
1 Year:12%
Return on Equity
10 Years:35%
5 Years:34%
3 Years:32%
Last Year:29%

Last Updated: April 16, 2024, 6:13 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital15151515151515151515151515
Reserves2752893133313555245676497729251,0591,1641,093
Borrowings0000000000000
Other Liabilities421439427479457259482541610545516474582
Total Liabilities7117447558268277981,0641,2051,3971,4861,5911,6541,691
Fixed Assets163175209198174220195213187173195590576
CWIP0000411340133310052
Investments224199181171162174416575753887971577466
Other Assets324370365457450403419416444393415486597
Total Assets7117447558268277981,0641,2051,3971,4861,5911,6541,691

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 151118130118132146420290331286277181
Cash from Investing Activity -639-183-24-18-264-148-155-144-9647
Cash from Financing Activity -81-117-113-126-130-130-139-144-177-159-187-224
Net Cash Flow710-1-6-22-217-2-0-17-55

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow210.00180.00218.00243.00237.00248.00294.00353.00415.00411.00412.00383.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7134555115551012
Inventory Days282288255336316257196187182226210205
Days Payable566248715444455587847457
Cash Conversion Cycle23323921127026721816213799148147161
Working Capital Days-80-74-54-32-1843-44-58-63-58-42-4
ROCE %71%58%69%65%58%51%50%56%58%48%42%38%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters32.16%32.16%32.16%32.16%32.16%32.16%32.16%32.16%32.16%32.16%32.16%32.16%
FIIs2.80%2.41%2.14%1.81%1.75%1.84%1.69%1.86%1.64%1.55%1.40%1.39%
DIIs17.54%17.27%16.19%16.28%16.59%16.62%16.64%16.62%16.87%17.24%17.54%17.52%
Public47.50%48.16%49.31%49.55%49.29%49.01%49.14%49.00%48.96%48.69%48.53%48.57%
Others0.00%0.00%0.20%0.20%0.20%0.37%0.37%0.37%0.37%0.37%0.37%0.37%
No. of Shareholders24,18626,78030,85933,36133,44133,28932,98832,58832,00231,25830,43131,073

Shareholding Pattern Chart

No. of Shareholders

VST Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Mid-Cap Opportunities Fund - Regular Plan8500000.52289.57
Axis Small Cap Fund1724920.3363.84
Parag Parikh ELSS Tax Saver Fund1068691.4339.55
HDFC Childrens Gift Fund - Regular Plan514880.2117.54
Nippon India Consumption Fund315001.7311.66
Nippon India Consumption Fund315001.7311.66
Samco ELSS Tax Saver Fund15000.630.51
ICICI Prudential S&P BSE 500 ETF690.010.02
HDFC S&P BSE 500 ETF30.020
HDFC S&P BSE 500 Index Fund130.010

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)211.75207.38201.27196.93146.90
Diluted EPS (Rs.)211.75207.38201.27196.93146.90
Cash EPS (Rs.)231.31226.87223.98223.97173.68
Book Value[Excl.RevalReserv]/Share (Rs.)763.96695.70609.02509.71430.02
Book Value[Incl.RevalReserv]/Share (Rs.)763.96695.70609.02509.71430.02
Dividend / Share (Rs.)150.00140.00114.00103.0095.00
Revenue From Operations / Share (Rs.)836.97762.97719.46802.59711.71
PBDIT / Share (Rs.)297.30296.80292.95299.19253.87
PBIT / Share (Rs.)277.74277.30270.24272.15227.09
PBT / Share (Rs.)277.74277.30270.24272.15227.09
Net Profit / Share (Rs.)211.75207.38201.27196.93146.90
PBDIT Margin (%)35.5238.9040.7137.2735.67
PBIT Margin (%)33.1836.3437.5633.9031.90
PBT Margin (%)33.1836.3437.5633.9031.90
Net Profit Margin (%)25.2927.1827.9724.5320.64
Return on Networth / Equity (%)27.7129.8033.0438.6334.16
Return on Capital Employeed (%)35.7039.0243.3552.0751.37
Return On Assets (%)19.7720.1320.9121.7618.79
Asset Turnover Ratio (%)0.790.760.770.950.96
Current Ratio (X)1.842.312.391.971.83
Quick Ratio (X)1.071.721.821.471.29
Inventory Turnover Ratio (X)1.901.741.602.072.09
Dividend Payout Ratio (NP) (%)65.8754.9551.1748.2452.75
Dividend Payout Ratio (CP) (%)60.3050.2345.9842.4144.62
Earning Retention Ratio (%)34.1345.0548.8351.7647.25
Cash Earning Retention Ratio (%)39.7049.7754.0257.5955.38
Enterprise Value (Cr.)4835.274715.835215.284258.335330.90
EV / Net Operating Revenue (X)3.744.004.693.444.85
EV / EBITDA (X)10.5310.2911.539.2213.60
MarketCap / Net Operating Revenue (X)3.764.024.713.474.88
Retention Ratios (%)34.1245.0448.8251.7547.24
Price / BV (X)4.124.405.575.468.08
Price / Net Operating Revenue (X)3.764.024.713.474.88
EarningsYield0.060.060.050.070.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 4689.62

The stock is undervalued by 18.39% compared to the current price ₹3961

Calculation basis:

  • Fair value = (P/E Ratio * (Return on Equity / 100) * Book Value) * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 55.33%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -40.33, which is a positive sign.
  3. The company has higher reserves (639.69 cr) compared to borrowings (0.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (441.31 cr) and profit (307.62 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 191.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in VST Industries Ltd:
    1. Net Profit Margin: 25.29%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 35.70% (Industry Average ROCE: 39%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 27.71% (Industry Average ROE: 29.1%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): N/A
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.07
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 21.7 (Industry average Stock P/E: 26)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: N/A
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating: ★★★︎☆☆

About the Company

VST Industries Ltd. is a Public Limited Listed company incorporated on 10/11/1930 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L29150TG1930PLC000576 and registration number is 000576. Currently Company is involved in the business activities of Manufacture of cigarettes, cigarette tobacco. Company’s Total Operating Revenue is Rs. 1178.16 Cr. and Equity Capital is Rs. 15.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cigarettes & Tobacco Products1-7-1063/1065, Azamabad, Hyderabad Telangana 500020corporate@vstind.com;
http://www.vsthyd.com
Management
NamePosition Held
Mr. Naresh Kumar SethiChairman & Non-Exe.Director
Mr. Aditya Deb GooptuManaging Director & CEO
Mr. S ThirumalaiNon Executive Director
Ms. Rama BijapurkarInd. Non-Executive Director
Mr. Sudip BandyopadhyayInd. Non-Executive Director
Mr. Rajiv GulatiInd. Non-Executive Director

VST Industries Ltd. Share Price Update

Share PriceValue
Today₹3,942.00
Previous Day₹3,966.75

FAQ

What is the latest fair value of VST Industries Ltd?

The latest fair value of VST Industries Ltd is ₹4689.62.

What is the Market Cap of VST Industries Ltd?

The Market Cap of VST Industries Ltd is 6,111 Cr..

What is the current Stock Price of VST Industries Ltd as on 23 April 2024?

The current stock price of VST Industries Ltd as on 23 April 2024 is 3,961.

What is the High / Low of VST Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of VST Industries Ltd stocks is ₹4,328/3,159.

What is the Stock P/E of VST Industries Ltd?

The Stock P/E of VST Industries Ltd is 21.7.

What is the Book Value of VST Industries Ltd?

The Book Value of VST Industries Ltd is 718.

What is the Dividend Yield of VST Industries Ltd?

The Dividend Yield of VST Industries Ltd is 3.79 %.

What is the ROCE of VST Industries Ltd?

The ROCE of VST Industries Ltd is 38.0 %.

What is the ROE of VST Industries Ltd?

The ROE of VST Industries Ltd is 29.0 %.

What is the Face Value of VST Industries Ltd?

The Face Value of VST Industries Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in VST Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE