10:1 bonus shares announced: Radhakishan Damani hikes stake in this cigarettes & tobacco manufacturing company in Q1FY25; Keep under the radar!
The shares of the company have a PE of 20.4x, an ROE of 29 per cent and an ROCE of 38 per cent.
On Friday, shares of VST Industries Ltd surged 2.47 per cent to Rs 4,092.35 per share from its previous closing of Rs 3,993.75 with an intraday high of Rs 4,290 and an intraday low of Rs 4,062.55. The stock’s 52-week high is Rs 4,850 and its 52-week low is Rs 3,160. The shares of the company saw a spurt in volume by more than 3.14 times on BSE.
Radhakishan Shivkishan Damani, the biggest ace investor of the Indian stock market with a net worth of approx. Rs 1.50 lakh crore and the owner of Avenue Supermarts Ltd (D Mart). He hiked his stake in Q1FY25 to 3.47 per cent compared to 1.95 per cent in Q4FY24.
The Board announced bonus shares in the ratio of 10:1 i.e., 10 new bonus equity shares of Rs 10 each for every 1 existing equity share of Rs 10 each fully paid up. The company has not fixed the record date for bonus shares.
Established in 1930, VST Industries, a leading cigarette manufacturer with a 10 per cent market share, focuses on manufacturing and trading cigarettes, tobacco and related products, solidifying its position as the third-largest player in the Indian tobacco market.
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Talking about the financials, VST has a market cap of over Rs 6,300 per share and has been maintaining a healthy dividend payout of 65 per cent. In its Quarterly Results and annual results, the company reported positive numbers. The company has no outstanding debts, and its stock is yielding a favourable dividend of 3.69 per cent.
The shares of the company have a PE of 20.4x, an ROE of 29 per cent and an ROCE of 38 per cent. The stock is up by 30 per cent from its 52-week low and gave multibagger returns of 150 per cent in a decade. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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