Buy VST Industries with a target of Rs 1260, says Rajesh Agarwal, Head of Research at Eastern Financiers.
Agarwal told CNBC-TV18, "One can buy VST Ind with a stop loss of Rs 1120 and a target of Rs 1260. The company has reported strong set of numbers for this quarter; PAT went up by 90% and sales rose up by about 15%."
He further added, "Cigarette division has shown good amount of jump and the best part is this company does not have any competition with ITC or Godfrey Philips, which operates into mid premium segment whereas this company operates into lower segment. The price hikes made in December and January have contributed to the bottom line and would add more in the near future because the operating margins are going to go up."
