Radhakishan Damani hikes stake in this cigarettes & tobacco manufacturing company; Board likely to announce Bonus Shares

Radhakishan Damani hikes stake in this cigarettes & tobacco manufacturing company; Board likely to announce Bonus Shares

Kiran Shroff

The stock is up by 45 per cent from its 52-week low and gave multibagger returns of 200 per cent in a decade.

The Indian stock market ended the trading session in the red with the BSE Sensex Index down 0.91 per cent and the NSE Nifty-50 Index down by 1.09 per cent. The market capitalization of BSE-listed companies was Rs 4,46,38,826.75 crore as of January 02, 2024. 

Though the market was in the red, one multibagger stock surged 10.91 per cent to Rs 4,576.10 per share from its previous closing of Rs 4,125.95 with an intraday high of Rs 4,850 and an intraday low of Rs 4,390.05. The stock also made a new 52-week high of Rs 4,850 per share. The shares of the company saw a spurt in volume by more than 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 1.50 lakh crore and the owner of Avenue Supermarts Ltd (D Mart). He hike stake in Q1FY25 to 3.47 per cent compared to 1.95 per cent in Q4FY24.

Additionally, the Board of Directors of the company will be held a meeting on Thursday, July 25, 2024, inter-alia to consider and approve the Unaudited Financial Results of the company (Standalone) for the quarter ended June 30, 2024 and may consider issue of bonus Shares in the aforesaid board meeting.

The champion stock name is VST INDUSTRIES LTD.  

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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 over Rs 7,000 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 45 per cent from its 52-week low and gave multibagger returns of 200 per cent in a decade.

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. 

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