Hold VST Industries; target of Rs 2073: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research has recommended hold rating on VST Industries with a target of Rs 2073, in its January 4, 2013 research report.
 
“The Vazir Sultan Tobacco Company Limited was incorporated on 10th November, 1930, under the Hyderabad Companies Act No. IV of 1320 Fasli and now governed under the Companies Act, 1956. It shares collaboration with British American Tobacco group of the United Kingdom. The name of the Company was subsequently changed to VST Industries Limited on 30th April, 1983. The Company has its Registered Office at Azamabad, Hyderabad. The Company has a manufacturing facility at Hyderabad (A.P) & its principal activities are manufacture & sale of cigarettes and unmanufactured tobacco.” 
 
“The company’s net profit jumps to Rs.276.00 million against Rs.335.90 million in the corresponding quarter ending of previous year, a decrease of 17.83%. Revenue for the quarter rose 6.94% to Rs.1761.90 million from Rs.1647.60 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.17.88 a share during the quarter, registering 17.83% decrease over previous year period. Profit before interest, depreciation and tax is Rs.458.50 millions as against Rs.541.40 millions in the corresponding period of the previous year.” 
 
“At the current market price of Rs 1885, the stock P/E ratio is at 16.15 x FY13E and 13.94 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.116.74 and Rs.135.18 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 30% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 10.04 x for FY13E and 8.75 x for FY14E. Price to Book Value of the stock is expected to be at 9.16 x and 8.37 x respectively for FY13E and FY14E. We recommend ‘HOLD’ in this particular scrip with a target price of Rs 2073 for medium to long term investment,” says Firstcall Research report.

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