BSE:509966

Stock Analysis Report

Executive Summary

VST Industries Limited manufactures and sells tobacco and its related products in India and internationally.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has VST Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

509966

1.1%

IN Tobacco

2.4%

IN Market


1 Year Return

40.6%

509966

-13.2%

IN Tobacco

8.0%

IN Market

Return vs Industry: 509966 exceeded the Indian Tobacco industry which returned -13.2% over the past year.

Return vs Market: 509966 exceeded the Indian Market which returned 8% over the past year.


Shareholder returns

509966IndustryMarket
7 Day1.2%1.1%2.4%
30 Day4.7%3.8%2.5%
90 Day22.1%-7.8%3.6%
1 Year44.6%40.6%-11.5%-13.2%10.3%8.0%
3 Year77.2%64.5%7.7%2.2%22.3%16.0%
5 Year155.8%120.3%18.7%7.8%42.8%29.3%

Price Volatility Vs. Market

How volatile is VST Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is VST Industries undervalued compared to its fair value and its price relative to the market?

24.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 509966 (₹3882.45) is trading above our estimate of fair value (₹2575.04)

Significantly Below Fair Value: 509966 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 509966 is poor value based on its PE Ratio (24.8x) compared to the Tobacco industry average (17.5x).

PE vs Market: 509966 is poor value based on its PE Ratio (24.8x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: 509966 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 509966 is overvalued based on its PB Ratio (9x) compared to the IN Tobacco industry average (2.8x).


Next Steps

Future Growth

How is VST Industries forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 509966's forecast earnings growth (13.1% per year) is above the savings rate (7.6%).

Earnings vs Market: 509966's earnings (13.1% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: 509966's earnings are forecast to grow, but not significantly.

Revenue vs Market: 509966's revenue (12.4% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: 509966's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 509966's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has VST Industries performed over the past 5 years?

8.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 509966's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: 509966's earnings growth over the past year (18.7%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: 509966 earnings growth over the past year (18.7%) exceeded the Tobacco industry 8.6%.


Return on Equity

High ROE: 509966's Return on Equity (36.3%) is considered high.


Return on Assets

ROA vs Industry: 509966 has a higher Return on Assets than the Tobacco industry average last year.


Return on Capital Employed

ROCE Improving: 509966's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is VST Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 509966's short term assets (₹9.6B) exceeds its short term liabilities (₹5.2B)

Long Term Liabilities: 509966's short term assets (9.6B) exceeds its long term liabilities (185.0M)


Debt to Equity History and Analysis

Debt Level: 509966 is debt free.

Reducing Debt: 509966 has not had any debt for past 5 years.

Debt Coverage: 509966 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 509966 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 509966 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 509966's debt is covered by short term assets.


Next Steps

Dividend

What is VST Industries's current dividend yield, its reliability and sustainability?

2.45%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%0.6%markettop25%2.4%industryaverage3.4%forecastin3Years3.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 509966's dividend (2.45%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 509966's dividend (2.45%) is in the top 25% of dividend payers in the Indian market (2.41%)

Stable Dividend: 509966's dividends per share have been stable in the past 10 years.

Growing Dividend: 509966's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.8%), 509966's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of VST Industries's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Devraj Lahiri (46yo)

1.9yrs

Tenure

₹25,613,663

Compensation

Mr. Devraj Lahiri, B.Com., M.B.A. has been Managing Director of VST Industries Limited since November 28, 2017 and serves as its CEO. Mr. Lahiri served as Deputy Managing Director of VST Industries Ltd unt ...


CEO Compensation Analysis

Compensation vs. Market: Devraj has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Indian market.

Compensation vs Earnings: Devraj's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 509966's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

0.4yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 509966's board of directors are not considered experienced ( 0.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rohit Sahni

    Vice President of Marketing

    • Tenure: 0yrs
  • Y. Reddy (66yo)

    Vice President of Leaf

    • Tenure: 0yrs
    • Compensation: ₹6.27m
  • Devraj Lahiri (46yo)

    MD, CEO & Whole Time Director

    • Tenure: 1.9yrs
    • Compensation: ₹25.61m
  • Sanjay Khanna (63yo)

    Corporate General Counsel

    • Tenure: 0yrs
    • Compensation: ₹3.08m
  • Phani Mangipudi (39yo)

    Head of Legal & Secretarial

    • Tenure: 2.7yrs
    • Compensation: ₹5.64m
  • T. Narasaiah (53yo)

    Vice President of Leaf

    • Tenure: 0yrs
  • Anish Gupta (47yo)

    Chief Financial Officer

    • Tenure: 5.5yrs
    • Compensation: ₹8.22m
  • Gopi A. (56yo)

    Vice President of Technical

    • Tenure: 0yrs
  • Sriram S. (52yo)

    Vice President of Human Resource

    • Tenure: 0yrs

Board Members

  • Rama Bijapurkar (62yo)

    Independent Non Executive Director

    • Tenure: 0.5yrs
  • Naresh Sethi (53yo)

    Non-Executive Chairman

    • Tenure: 0.3yrs
  • Sampathkumaran Thirumalai (70yo)

    Non Executive Director

    • Tenure: 14yrs
    • Compensation: ₹4.93m
  • Devraj Lahiri (46yo)

    MD, CEO & Whole Time Director

    • Tenure: 1.9yrs
    • Compensation: ₹25.61m
  • Sudip Bandyopadhyay (55yo)

    Independent Non Executive Director

    • Tenure: 0.3yrs
  • Rajiv Gulati (62yo)

    Independent Non Executive Director

    • Tenure: 0.3yrs

Company Information

VST Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VST Industries Limited
  • Ticker: 509966
  • Exchange: BSE
  • Founded: 1930
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹60.532b
  • Shares outstanding: 15.44m
  • Website: https://www.vsthyd.com

Number of Employees


Location

  • VST Industries Limited
  • 1-7-1063/1065, Azamabad
  • Hyderabad
  • Andhra Pradesh
  • 500020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
509966BSE (Mumbai Stock Exchange)YesOrdinary SharesININRFeb 1995
VSTINDNSEI (National Stock Exchange of India)YesOrdinary SharesININRFeb 1995

Biography

VST Industries Limited manufactures and sells tobacco and its related products in India and internationally. It also offers leaf and unmanufactured tobacco, and cigarettes that contain tobacco. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:34
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.