NSEI:VSTIND

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with outstanding 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

Stable Share Price: VSTIND's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

VSTIND

3.4%

IN Tobacco

8.9%

IN Market


1 Year Return

-20.3%

VSTIND

-41.4%

IN Tobacco

-30.6%

IN Market

Return vs Industry: VSTIND exceeded the Indian Tobacco industry which returned -41.4% over the past year.

Return vs Market: VSTIND exceeded the Indian Market which returned -30.6% over the past year.


Shareholder returns

VSTINDIndustryMarket
7 Day1.6%3.4%8.9%
30 Day-32.0%-12.3%-24.8%
90 Day-35.2%-24.4%-29.4%
1 Year-18.0%-20.3%-39.1%-41.4%-29.2%-30.6%
3 Year4.2%-3.2%-37.8%-43.9%-17.0%-21.5%
5 Year106.4%77.7%-27.1%-38.3%-5.4%-10.4%

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?

9.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VSTIND (₹2771.95) is trading below our estimate of fair value (₹3069.89)

Significantly Below Fair Value: VSTIND is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: VSTIND is poor value based on its PE Ratio (15x) compared to the Tobacco industry average (13x).

PE vs Market: VSTIND is poor value based on its PE Ratio (15x) compared to the Indian market (9.2x).


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 (6.7x) compared to the IN Tobacco industry average (2.2x).


Next Steps

Future Growth

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

3.8%

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.


Next Steps

Past Performance

How has VST Industries performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VSTIND has high quality earnings.

Growing Profit Margin: VSTIND's current net profit margins (23.5%) are higher than last year (20.1%).


Past Earnings Growth Analysis

Earnings Trend: VSTIND's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: VSTIND's earnings growth over the past year (29%) exceeds its 5-year average (13.1% per year).

Earnings vs Industry: VSTIND earnings growth over the past year (29%) exceeded the Tobacco industry -1.9%.


Return on Equity

High ROE: VSTIND's Return on Equity (44.9%) is considered outstanding.


Next Steps

Financial Health

How is VST Industries's financial position?


Financial Position Analysis

Short Term Liabilities: VSTIND's short term assets (₹9.6B) exceed its short term liabilities (₹5.3B).

Long Term Liabilities: VSTIND's short term assets (₹9.6B) exceed its long term liabilities (₹218.5M).


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

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

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


Next Steps

Dividend

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

3.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VSTIND's dividend (3.41%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: VSTIND's dividend (3.41%) is low compared to the top 25% of dividend payers in the Indian market (4.16%).


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 (51.2%), 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?

3.0yrs

Average management tenure


CEO

Devraj Lahiri (46yo)

2.25s

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's total compensation ($USD339.92K) is about average for companies of similar size in the Indian market ($USD348.93K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Devraj Lahiri
MD, CEO & Whole Time Director2.25yrs₹25.61mno data
Anish Gupta
Chief Financial Officer5.83yrs₹8.22mno data
Gopi A.
Vice President of Technicalno datano datano data
Phani Mangipudi
Head of Legal & Secretarial3yrs₹5.64m0.000010% 4.1k
Sriram S.
Vice President of Human Resourceno datano datano data
T. Narasaiah
Vice President of Leafno datano datano data
Rohit Sahni
Vice President of Marketingno datano datano data
Y. Reddy
Vice President of Leafno data₹6.27mno data
Sanjay Khanna
Corporate General Counselno data₹3.08mno data

3.0yrs

Average Tenure

52.5yo

Average Age

Experienced Management: VSTIND's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Devraj Lahiri
MD, CEO & Whole Time Director2.25yrs₹25.61mno data
Rama Bijapurkar
Independent Non Executive Director0.83yrno datano data
Naresh Sethi
Non-Executive Chairman0.67yrno datano data
Sampathkumaran Thirumalai
Non Executive Director14.42yrs₹4.93m0.00016% 66.1k
Sudip Bandyopadhyay
Independent Non Executive Director0.67yrno datano data
Rajiv Gulati
Independent Non Executive Director0.67yrno datano data

0.8yrs

Average Tenure

58.5yo

Average Age

Experienced Board: VSTIND's board of directors are not considered experienced ( 0.8 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.


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: ₹41.308b
  • 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 was formerly known as Vazir Sultan Tobacco Company Limited and changed its name to VST Industries Limited in April 1983. VST Industries Limited was incorporated in 1930 and is based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:03
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.