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Nov 21, 2010

VST Industries LTD - 509966

 

 

Name of Company

VST Industries Ltd

BSE Code

509966

NSE Code

VSTIND

ICICI Code

Established

My Take

Like

Headquarters

Hyderabad

Promoters

Story

Sector

FMCG

Sub-sector

Cigrattes

Website

http://www.vsthyd.com/

Positives

Zero Debt, regular dividend – yield expected is at 3% (Rs. 20). ITC(has 9% stake), LIC, New India Assurance, NIC, OIC, etc have stakes in this company. Promoters hold 32% with none pledged. Maintaining 13-17% NPM from FY06 to FY10. Revenues have grown from 312 to 475 in the same time period.

Negatives

16 times earnings is as costly as ITC which is a 40 times bigger company. Website is not well organized, though results are regularly updated. Slow growth in revenues.

Peers

News

Price @ blogged

619 (20-Nov-10)

Cost of company

955 Cr market cap for a FY NP of 62 Cr less than 16 times. For a zero debt company with 230 Cr, this seems slightly costly

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