Moneycontrol
Last Updated : Apr 13, 2018 03:49 PM IST | Source: Moneycontrol.com

Buy VST Industries; target of Rs 3900: ICICI Direct

ICICIdirect is bullish on VST Industries has recommended buy rating on the stock with a target price of Rs 3900 in its research report dated April 13, 2018.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

ICICI Direct's research report on VST Industries


VST Industries reported strong revenue growth of 26.5% to | 279.1 crore on a comparable basis with cigarettes and tobacco segments contributing | 209.6 crore and | 90 crore to revenues, respectively. Cigarette volumes were flat during the quarter and for FY18. The contribution of 64 mm and 69 mm category cigarettes to the topline was in the ratio of 50:50. Premium brands Total and Edition contributed 20% to overall volumes


Outlook

However, with the improving product mix towards high margin products (contributing ~20% currently to total volumes), EBITDA/stick is estimated to increase to RS 0.47 per stick. We reiterate BUY recommendation on the stock with a target price of RS 3900/share, valuing it at 24.3x FY20E earnings.

For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Apr 13, 2018 03:49 pm
Loading...
Sections
Follow us on
Available On