Radhakishan Damani bought 2,22,935 shares and SBI Mutual Fund bought 2,25,000 shares of this cigarettes & tobacco manufacturing company; scrip hit upper circuit & 52-week high!

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 Indian stock market ended the trading session in the red on January 02, 2023, with the BSE Sensex Index down 0.53 per cent and the NSE Nifty-50 Index down by 0.35 per cent. The market capitalization of BSE-listed companies was Rs 3,65,18,064.22 crore as of January 02, 2024. 

Though the market was in the red, one multibagger stock was locked in a 20 per cent upper circuit to Rs 4,065.30 per share from its previous closing of Rs 3,387.75. The stock also made a new 52-week high of Rs 4,065.30 per share. The shares of the company saw a spurt in volume by more than 8.11 times on BSE.  

This champion stock scaled Everest, and now let's delve into the details to uncover the hidden pathways that led it to the peak before revealing its name!

Radhakishan Shivkishan Damani, the biggest ace investor of the Indian stock market with a net worth of approx. Rs 1,86,000 crore and the owner of Avenue Supermarts Ltd (D Mart). He bought 2,22,935 shares at Rs 3,390 per share aggregating to Rs 75.57 crore via a block deal as per data available on BSE.

Along with him, SBI Mutual Fund bought 2,25,000 shares at Rs 3,390 per share aggregating to approx. Rs 76.27 crore. On the very same day, HDFC Mutual Fund sold 2,00,000 shares at Rs 3,390.13 per share and DSP Mutual Fund sold 2,50,000 shares at Rs 3,390 per share.

The champion stock name is VST INDUSTRIES LTD.  

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.

Talking about the financials, VST has a market cap of Rs 6,277.60 crore 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. After a sluggish 2023, VST Industries has roared back to life, clocking a 23.77 per cent gain since yesterday and building on its remarkable 140 per cent multibagger return over the past ten years.

Do you own VST Industries Ltd.’s stock in your portfolio? Do let us know in the comments below

Disclaimer: The article is for informational purposes only and not investment advice.