NSEI:VSTIND

Stock Analysis Report

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Market Cap

₹54.1b

Last Updated

2021/07/23 16:03 UTC

Data Sources

Company Financials

Executive Summary

VST Industries Limited engages in manufacturing and marketing of cigarettes primarily in India. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


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

Stable Share Price: VSTIND is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: VSTIND's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

VSTIND

2.1%

IN Tobacco

-0.3%

IN Market


1 Year Return

9.7%

VSTIND

3.1%

IN Tobacco

53.6%

IN Market

Return vs Industry: VSTIND exceeded the Indian Tobacco industry which returned 3.6% over the past year.

Return vs Market: VSTIND underperformed the Indian Market which returned 53% over the past year.


Shareholder returns

VSTINDIndustryMarket
7 Day-0.8%2.1%-0.3%
30 Day0.2%4.2%2.0%
90 Day7.5%3.8%15.0%
1 Year13.2%9.7%7.7%3.1%55.7%53.6%
3 Year39.1%24.0%-27.3%-37.3%39.2%32.1%
5 Year104.4%72.2%-24.7%-39.2%83.0%67.8%

Long-Term 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?

17.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VSTIND (₹3507.4) is trading above our estimate of fair value (₹2784.54)

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


Price To Earnings Ratio

PE vs Industry: VSTIND is poor value based on its PE Ratio (17.4x) compared to the Asian Tobacco industry average (16.5x).

PE vs Market: VSTIND is good value based on its PE Ratio (17.4x) compared to the Indian market (23.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VSTIND's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VSTIND is overvalued based on its PB Ratio (5.8x) compared to the IN Tobacco industry average (2.2x).


Future Growth

How is VST Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.2%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as VST Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has VST Industries performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VSTIND has a high level of non-cash earnings.

Growing Profit Margin: VSTIND's current net profit margins (28%) are higher than last year (24.5%).


Past Earnings Growth Analysis

Earnings Trend: VSTIND's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: VSTIND's earnings growth over the past year (2.2%) is below its 5-year average (16.6% per year).

Earnings vs Industry: VSTIND earnings growth over the past year (2.2%) underperformed the Tobacco industry 2.2%.


Return on Equity

High ROE: VSTIND's Return on Equity (33%) is considered high.


Financial Health

How is VST Industries's financial position?


Financial Position Analysis

Short Term Liabilities: VSTIND's short term assets (₹12.5B) exceed its short term liabilities (₹5.2B).

Long Term Liabilities: VSTIND's short term assets (₹12.5B) exceed its long term liabilities (₹220.8M).


Debt to Equity History and Analysis

Debt Level: VSTIND is debt free.

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

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

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


Balance Sheet


Dividend

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

3.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VSTIND's dividend (3.25%) is higher than the bottom 25% of dividend payers in the Indian market (0.36%).

High Dividend: VSTIND's dividend (3.25%) is in the top 25% of dividend payers in the Indian market (1.44%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.6%), VSTIND'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

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Aditya Gooptu (49 yo)

0.58

Tenure

₹26,718,367

Compensation

Mr. Aditya Deb Gooptu serves as Director, Managing Director and Chief Executive Officer at VST Industries Limited since December 1, 2020. He has spent over 17 years (2003-2020) in Godfrey Phillips India in...


CEO Compensation Analysis

Compensation vs Market: Aditya's total compensation ($USD358.88K) is about average for companies of similar size in the Indian market ($USD387.57K).

Compensation vs Earnings: Insufficient data to compare Aditya's compensation with company performance.


Leadership Team

Experienced Management: VSTIND's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: VSTIND's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: VST Industries Limited
  • Ticker: VSTIND
  • Exchange: NSEI
  • Founded: 1930
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹54.095b
  • Shares outstanding: 15.44m
  • Website: https://www.vsthyd.com

Number of Employees


Location

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

Listings


Biography

VST Industries Limited engages in manufacturing and marketing of cigarettes primarily in India. It also trades in unmanufactured tobacco. The company was formerly known as Vazir Sultan Tobacco Company Limi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/23 16:03
End of Day Share Price2021/07/23 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.