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| vst industries share price |
Hello! This article is about VST Industries share price target for 2025
. We'll talk about how the company makes money, areas where it might
grow, and other important info. After reviewing the stock, we'll share
the results with you. VST Industries seems like a good long-term
investment, and we'll cover its basics, analysis, and more to help you
decide. Let's start by looking at the company's history and business
structure.
Company: VST Industries Ltd. (VSTIND)
Market Cap: Rs. 5224 crore (as of Jan 3, 2024)
Industry: Tobacco (cigarettes and chewing tobacco)
Products: Cigarettes (Kings, Charms, Filter Mild, Lights, etc.), Chewing tobacco (Pan Parag, Maja, Dilbahar, etc.)
1. Financial Strengths
- Zero debt
- Healthy return on equity (ROE) above 30% in the past 3 years
- Efficient cash conversion cycle of 19.88 days
Financial performance of VST Industries Ltd. for the last 5 years
| Year | Sales (Cr.) | Net Profit (Cr.) | Reserves (Cr.) | Assets (Cr.) | Debt (Cr.) | EPS (Rs.) |
| 2023 | 1290.11 | 326.98 | 3524.57 | 5598.05 | 0 | 27.95 |
| 2022 | 1176.62 | 320.23 | 3207.59 | 5205.1 | 0 | 27.16 |
| 2021 | 1109.79 | 310.79 | 2887.36 | 4829.12 | 0 | 26.24 |
| 2020 | 1238.05 | 304.09 | 2576.57 | 4440.25 | 0 | 25.7 |
| 2019 | 1097.61 | 226.84 | 2272.48 | 3955.9 | 0 | 19.02 |
As
you can see, VST Industries has shown consistent growth in sales, net
profit, and reserves over the past five years. The company also has a
strong financial position with zero debt.
Financial Weaknesses
- Slow revenue and profit growth in recent years
- Reliance on a single industry (tobacco)
2. Shareholding Pattern
- Promoter Group: 52.25%
- FIIs: 14.51%
- DIIs: 15.05%
- Public: 18.19%
3. Share Performance
5-year CAGR - 6.4%
1-year return - 9.7%
Recent positive signs
- Strong quarterly sales growth (39.43%)
- Zero debt burden
- High dividend yield
Recent negative signs
- Potential headwinds from legal challenges and tax increases
- Slowing overall industry growth
4. Operations and Profit Generation
VSTIND manufactures and sells cigarettes and chewing tobacco products mainly in India.
Profits are generated through:
- Selling cigarettes and chewing tobacco at a premium price
- Cost control measures
- Increasing market share
5. Potential Growth Areas
Premiumization of product portfolio
Expanding into new geographic market
VST Industries Share Price Target 2025
VST
Industries is expected to increase its earnings and revenue by 10.4%
and 7.1% each year. The earnings per share (EPS) is also predicted to
grow by 10.4% annually. In three years, the return on equity is
projected to be 26.2%.
VSTIND has popular
brands like Kings, Charms, and Pan Parag in its strong brand portfolio.
The company has a good distribution network all over India. While the
Indian tobacco industry may face challenges from regulations and taxes,
VSTIND is well-prepared to handle these difficulties.
For 2025, the stock price target for VST Industries Ltd. (VSTIND) is estimated to be ₹4630 at the lowest and ₹4954.1 at the highest. This estimate is based on the Discounted Cash Flow (DCF) method, which uses projected future cash flows.
Keep
in mind that DCF results are estimates based on assumptions. It's
important to consider various scenarios, sensitivity analysis, and other
valuation methods to fully understand VST's potential value.
DISCLAIMER: Dear
readers, we’d like to inform you that we are not authorized by SEBI
(Securities and Exchange Board of India). The information on this site
is only for informational and educational purposes and shouldn’t be
considered financial advice or stock recommendations. Also, the share
price predictions are completely for reference purposes. The price
predictions will only be valid when there are positive signs on the
market. Any uncertainty about the company’s future or the current state
of the market will not be considered in this study. Though this is just
for informational purposes, We are not responsible for any financial
loss you might incur through the information on this site. We are here
to provide timely updates about the stock market and financial products
to help you make better investment choices. Do your own research before
any investment.
