VST Industries operates at the forefront of the tobacco industry, specializing in the manufacturing and trading of cigarettes, tobacco, and related products. With a robust presence in the market, the company plays a pivotal role in meeting the diverse preferences of consumers in the tobacco sector.
In this comprehensive article, we will delve into the intricacies of VST Industries, exploring its history, products, market standing, and any noteworthy developments that have shaped its trajectory in the dynamic tobacco industry. Gain insights into the company’s strategies, innovations, and contributions that define its presence in this highly regulated and evolving sector.
About VST Industries
Established in 1930, The Vazir Sultan Tobacco Company Limited has emerged as a prominent player in the tobacco industry, holding the esteemed position of the third-largest cigarette manufacturer in the domestic market, boasting a substantial market share of approximately 10%.
With a rich legacy, the company takes pride in its diverse brand portfolio, featuring five distinctive and vibrant brands – Total, Editions, Charms, Special, and Moments. This robust collection caters to a spectrum of consumer preferences, showcasing the company’s commitment to offering a wide range of high-quality tobacco products. As we delve further into this article, we will explore the nuances of each brand and unravel the strategies that have contributed to the company’s enduring success in the dynamic tobacco market.
Below are the trading platforms that you can use to purchase VST Industries shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
Radhakishan Damani’s VST Industries Stake Sale Triggers 20% Surge
Shares of VST Industries Limited experienced a substantial 20% surge, reaching Rs 4,060, following a block deal involving a 4% equity stake. Approximately six lakh shares changed hands, marking a significant increase from the one-week and one-month averages. The sale has garnered attention due to ace investor Radhakishan Damani’s notable stake in the company through Bright Star Investments, with a 25% ownership, and his historical involvement in VST Industries back in 2001. The market eagerly awaits details on the buyers and sellers in this notable transaction.
| When | Maximum Price | Minimum Price |
| January 2024 | 3,916.08 | 3,405.29 |
| February 2024 | 3,996.00 | 3,474.78 |
| March 2024 | 4,077.55 | 3,545.70 |
| April 2024 | 3,958.79 | 3,442.42 |
| May 2024 | 3,900.28 | 3,391.55 |
| June 2024 | 4,040.69 | 3,513.65 |
| July 2024 | 4,000.29 | 3,478.51 |
| August 2024 | 4,160.30 | 3,617.65 |
| September 2024 | 4,326.71 | 3,762.36 |
| October 2024 | 4,241.87 | 3,688.58 |
| November 2024 | 4,369.13 | 3,799.24 |
| December 2024 | 4,478.36 | 3,894.22 |
As of January 12, 2024, VST Industries exhibits a current stock price of ₹3,626, with a high/low range of ₹4,328 and ₹2,910, respectively. The stock’s Price/Earnings ratio stands at 18.2, reflecting a stable valuation. The company’s market capitalization is ₹5,595 Crores.
Looking ahead, the 2024 share price targets suggest a positive trajectory, reaching a maximum of ₹4,478.36 and a minimum of ₹3,391.55 by December. With a robust book value of ₹718 and a dividend yield of 4.14%, VST Industries continues to be an intriguing prospect for investors.
| When | Maximum Price | Minimum Price |
| January 2025 | 4,567.92 | 3,513.79 |
| February 2025 | 4,685.05 | 3,603.88 |
| March 2025 | 4,867.77 | 3,744.44 |
| April 2025 | 4,772.32 | 3,671.02 |
| May 2025 | 4,633.32 | 3,564.09 |
| June 2025 | 4,841.82 | 3,724.48 |
| July 2025 | 4,746.88 | 3,651.45 |
| August 2025 | 4,893.69 | 3,764.38 |
| September 2025 | 5,064.97 | 3,896.13 |
| October 2025 | 5,196.66 | 3,997.43 |
| November 2025 | 5,326.58 | 4,097.37 |
| December 2025 | 5,459.74 | 4,199.80 |
Anticipating a positive trajectory, VST Industries projects an optimistic share price outlook for 2025. Commencing the year with a maximum of ₹4,567.92 and a minimum of ₹3,513.79 in January, the trend continues upward, reaching a peak of ₹5,459.74 and a floor of ₹4,199.80 by December.
Notably, the company’s strategic move in FY23 with the introduction of three new variants—Total Royal Twist, Total Active Mint, and Total Refresh—reflects a commitment to product diversification. With these promising projections and ongoing innovations, VST Industries remains a key player in the dynamic tobacco market, poised for growth and capturing investor interest.
| When | Maximum Price | Minimum Price |
| January 2026 | 5,623.54 | 4,325.80 |
| February 2026 | 5,767.73 | 4,436.71 |
| March 2026 | 5,992.67 | 4,609.75 |
| April 2026 | 5,875.17 | 4,519.36 |
| May 2026 | 5,704.05 | 4,387.73 |
| June 2026 | 5,960.73 | 4,585.17 |
| July 2026 | 5,843.85 | 4,495.27 |
| August 2026 | 6,024.59 | 4,634.30 |
| September 2026 | 6,235.45 | 4,796.50 |
| October 2026 | 6,397.57 | 4,921.21 |
| November 2026 | 6,557.51 | 5,044.24 |
| December 2026 | 6,721.45 | 5,170.34 |
Envisioning a continued upward trajectory, VST Industries sets ambitious share price targets for 2026. The year starts with a maximum of ₹5,623.54 and a minimum of ₹4,325.80 in January, culminating in a peak of ₹6,721.45 and a floor of ₹5,170.34 by December.
The company’s strategic geographical split, with 90% of operations in India and 10% in exports, underscores its robust domestic presence. Operating with two factories and six regional offices, VST Industries demonstrates a commitment to efficiency and innovation. With a substantial consumption of ~4,955 tonnes of tobacco as raw materials, the company positions itself for sustained growth in the dynamic tobacco market.
| When | Maximum Price | Minimum Price |
| January 2027 | 6,855.88 | 5,273.75 |
| February 2027 | 7,031.67 | 5,408.98 |
| March 2027 | 7,305.90 | 5,619.93 |
| April 2027 | 7,162.65 | 5,509.73 |
| May 2027 | 6,954.03 | 5,349.25 |
| June 2027 | 7,266.96 | 5,589.97 |
| July 2027 | 7,124.47 | 5,480.36 |
| August 2027 | 7,344.82 | 5,649.86 |
| September 2027 | 7,601.88 | 5,847.60 |
| October 2027 | 7,799.53 | 5,999.64 |
| November 2027 | 7,994.52 | 6,149.63 |
| December 2027 | 8,194.38 | 6,303.37 |
VST Industries foresees a robust performance in 2027, projecting an upward trajectory for its share prices. Initiating the year with a maximum of ₹6,855.88 and a minimum of ₹5,273.75 in January, the trend continues to climb, reaching an apex of ₹8,194.38 and a base of ₹6,303.37 by December.
The company’s dedication to innovation is evident through its substantial investment in Research & Development, channeling approximately Rs. 76 crore (0.45% of its Gross Turnover) in FY23. Additionally, as an associate of British American Tobacco Plc, with the latter holding a significant 32% stake, VST Industries solidifies its global standing in the tobacco industry.
| When | Maximum Price | Minimum Price |
| January 2028 | 8,358.27 | 6,429.44 |
| February 2028 | 8,572.59 | 6,594.30 |
| March 2028 | 8,906.92 | 6,851.48 |
| April 2028 | 8,732.27 | 6,717.13 |
| May 2028 | 8,477.93 | 6,521.49 |
| June 2028 | 8,859.44 | 6,814.95 |
| July 2028 | 8,685.73 | 6,681.33 |
| August 2028 | 8,954.36 | 6,887.97 |
| September 2028 | 9,267.76 | 7,129.05 |
| October 2028 | 9,508.72 | 7,314.40 |
| November 2028 | 9,746.44 | 7,497.26 |
| December 2028 | 9,990.10 | 7,684.69 |
- January 2028: ₹6,429.44 (Minimum)
- December 2028: ₹9,990.10 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2029 | 10,189.90 | 7,838.39 |
| February 2029 | 10,451.18 | 8,039.37 |
| March 2029 | 10,858.78 | 8,352.91 |
| April 2029 | 10,645.86 | 8,189.12 |
| May 2029 | 10,335.79 | 7,950.61 |
| June 2029 | 10,800.90 | 8,308.38 |
| July 2029 | 10,589.12 | 8,145.47 |
| August 2029 | 10,916.61 | 8,397.40 |
| September 2029 | 11,298.70 | 8,691.30 |
| October 2029 | 11,592.46 | 8,917.28 |
| November 2029 | 11,882.27 | 9,140.21 |
| December 2029 | 12,179.33 | 9,368.72 |
- January 2029: ₹14,492.15 (Minimum)
- December 2029: ₹22,517.99 (Maximum)
| When | Maximum Price | Minimum Price |
| January 2030 | 12,422.92 | 9,556.09 |
| February 2030 | 12,741.45 | 9,801.12 |
| March 2030 | 13,238.37 | 10,183.36 |
| April 2030 | 12,978.79 | 9,983.69 |
| May 2030 | 12,600.77 | 9,692.90 |
| June 2030 | 13,167.81 | 10,129.08 |
| July 2030 | 12,909.61 | 9,930.47 |
| August 2030 | 13,308.88 | 10,237.60 |
| September 2030 | 13,774.69 | 10,595.92 |
| October 2030 | 14,132.83 | 10,871.41 |
| November 2030 | 14,486.15 | 11,143.19 |
| December 2030 | 14,848.31 | 11,421.77 |
- January 2030: ₹9,556.09 (Minimum)
- December 2030: ₹14,848.31 (Maximum)
VST Industries Financial Condition: Last 5 Years
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 1,099 | 1,239 | 1,111 | 1,178 | 1,292 |
| Expenses (Rs. Crores) | 746 | 825 | 700 | 767 | 910 |
| Operating Profit (Rs. Crores) | 353 | 415 | 411 | 412 | 383 |
| OPM (%) | 32% | 33% | 37% | 35% | 30% |
| Other Income (Rs. Crores) | 39 | 47 | 42 | 47 | 76 |
| Interest (Rs. Crores) | 0 | 0 | 0 | 0 | 0 |
| Depreciation (Rs. Crores) | 41 | 42 | 35 | 30 | 30 |
| Profit before Tax (Rs. Crores) | 351 | 420 | 417 | 428 | 429 |
| Tax (%) | 35% | 28% | 26% | 25% | 24% |
| Net Profit (Rs. Crores) | 227 | 304 | 311 | 320 | 327 |
| EPS (Rs.) | 146.90 | 196.93 | 201.26 | 207.38 | 211.75 |
| Dividend Payout (%) | 65% | 52% | 57% | 68% | 71% |
- Over the past five years, VST Industries has exhibited consistent financial stability.
- Sales have demonstrated steady growth, reaching Rs. 1,292 Crores in March 2023.
- The company maintains a robust Operating Profit Margin (OPM) of 30%, showcasing operational efficiency.
- Net profit has shown a continual increase, standing at Rs. 327 Crores, accompanied by an Earnings Per Share (EPS) of Rs. 211.75.
- Despite economic fluctuations, VST Industries has sustained a healthy Return on Equity (ROE), registering 29% in the last year.
- Compounded sales growth has averaged 6% over the past five years, while the compounded profit growth has seen a positive trend over various periods.
- The recent negative trend in compounded profit growth for the trailing twelve months (TTM) suggests the need for careful monitoring.
- The stock has exhibited a robust 14% Compound Annual Growth Rate (CAGR) in the last year, indicating strong investor confidence in VST Industries’ market standing.
FAQs
What defines VST Industries’ current market standing?
VST Industries currently holds a market capitalization of ₹5,595 Crores, positioning itself as a significant player in the tobacco industry.
As of January 12, 2024, VST Industries’ shares are valued at ₹3,626.
Can you provide insights into VST Industries’ stock price range?
Certainly, VST Industries’ stock exhibits a high/low range of ₹4,328 and ₹2,910, showcasing its dynamic market performance.
How is VST Industries’ valuation represented by its Price/Earnings (PE) ratio?
VST Industries maintains a stable valuation with a Price/Earnings (PE) ratio of 18.2.
What dividend yield does VST Industries offer to investors?
VST Industries presents an attractive dividend yield of 4.14%.
What are the anticipated share price targets for VST Industries in 2024?
VST Industries projects a share price range of ₹3,391.55 to ₹4,478.36 for 2024.
What is the compounded profit growth rate for VST Industries in the last 5 years?
VST Industries sustained a robust compounded profit growth rate of 13% over the last 5 years.
What is VST Industries’ Return on Equity (ROE) in the last year?
In the last year, VST Industries demonstrated a commendable Return on Equity (ROE) of 29%.
What is the Compound Annual Growth Rate (CAGR) for VST Industries’ stock in the last year?
Impressively, VST Industries’ stock exhibited a robust 14% Compound Annual Growth Rate (CAGR) in the last year.
VST Industries envisions a positive trajectory with projected share price ranges of ₹4,567.92 to ₹5,459.74 in 2025 and ₹9,556.09 to ₹14,848.31 in 2030.
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VST Industries, a prominent player in the tobacco industry since its inception in 1930, emerges as the third-largest domestic cigarette manufacturer. The diverse brand lineup, including Total, Editions, Charms, Special, and Moments, signifies the company’s commitment to meeting the varied preferences of consumers. The recent 20% surge in shares, triggered by a block deal involving a 4% equity stake and orchestrated by investor Radhakishan Damani’s Bright Star Investments, highlights the market’s keen interest.
For potential investors, VST Industries presents an enticing opportunity marked by a steady valuation, an attractive 4.14% dividend yield, and an impressive 29% Return on Equity (ROE). The company’s forward-looking share price targets for 2024, 2025, and beyond paint an optimistic trajectory, aiming for ₹14,848.31 by December 2030. The introduction of new variants in FY23 underscores VST Industries’ dedication to innovation.
Furthermore, the company’s debt-free status, consistent 65.0% dividend payout, and robust 3 Years ROE of 31.9% showcase its commitment to shareholder value. Despite these strengths, challenges linger, including a modest 6.40% sales growth over the past five years and a relatively low promoter holding at 32.2%, prompting a prudent investment approach.
In summary, VST Industries stands resilient in the tobacco sector, offering stability, innovation, and dividends to investors, albeit with a need for careful consideration of its nuances.
What did we learn?
- 1 About VST Industries
- 2 How to purchase VST Industries Shares?
- 3 Radhakishan Damani’s VST Industries Stake Sale Triggers 20% Surge
- 4 VST Industries Share Price Target 2024 To 2030
- 5 VST Industries Financial Condition: Last 5 Years
- 6 FAQs
- 6.1 What defines VST Industries’ current market standing?
- 6.2 What is the latest share price for VST Industries?
- 6.3 Can you provide insights into VST Industries’ stock price range?
- 6.4 How is VST Industries’ valuation represented by its Price/Earnings (PE) ratio?
- 6.5 What dividend yield does VST Industries offer to investors?
- 6.6 What is the compounded profit growth rate for VST Industries in the last 5 years?
- 6.7 What is VST Industries’ Return on Equity (ROE) in the last year?
- 6.8 What is the Compound Annual Growth Rate (CAGR) for VST Industries’ stock in the last year?
- 6.9 What are the anticipated share price targets for VST Industries in 2025 and 2030?
- 7 Conclusion: Navigating Opportunities and Challenges in VST Industries’ Tobacco Odyssey
