VST Industries Ltd. share price target and research reports

Name: Latest research reports of VST Industries Ltd. authored by ICICI Securities Limited and published by - Trendlyne research reports.
Item: VST Industries Ltd.
Rating: 3
Author: ICICI Securities Limited

Latest analyst research reports with target prices and PDF download for VSTIND, BSE:509966 VST Industries Ltd.

VST Industries Ltd.

28 Oct 2020

238.40

0.06%

VST Industries

Hold: VST Industries Ltd.

Recommendation Target

ICICI Securities Limited

High priced brands contribution improves; volume dip concern The company took a price hike of 12% on 80% of its product portfolio (blended price hike of ~11%) in March, April 2020. Total' & Edition' (high priced brands) are contributing 45% to volume. We believe contribution of these brands would continue to increase given the company has been expanding its distribution in new states. The excise increase in Budget & pandemic had an adverse impact on cigarettes volumes in FY21. We believe work from home culture, health concerns would continue to impact volumes...

VST Industries has lost -25.86% in the last 1 Year

VST Industries Ltd.

04 Aug 2020

238.40

0.06%

VST Industries

Buy: VST Industries Ltd.

Target

ICICI Securities Limited

VST Industries reported resilient sales despite manufacturing, supply chain as well as retails selling points remaining closed for~40 days. Gross sales declined merely 4.4% but net of excise, sales were down 19.4%. Cigarette sales de-grew 4% to | 274.7 crore while tobacco sales fell 7% to | 40 crore. Cigarette volumes were down 39% (similar to ITC's decline of ~40%). The company took a blended price hike of 11% after the excise increase in Budget in February 2020. The new price points for Edition', Total' are | 11, | 7, respectively. More, importantly it curtailed trade promotions & schemes...

VST Industries Ltd. is trading below all available SMAs

VST Industries Ltd.

22 May 2020

238.40

0.06%

VST Industries

Buy: VST Industries Ltd.

ICICI Securities Limited

Double whammy of excise, lockdown to impact FY21 PAT Though the March quarter was largely unaffected by lockdown given prestocking by dealers, we believe Q1FY21 would be significantly impacted by 45 days production halt as well as shutdown of most retail shops in the country. We expect loss of sales during this period, which is likely to result in volume decline by 8% in FY21. Moreover, price increase due to the hike in excise duty in February 2020 would also lead to realisation growth to the tune of ~22% (including the mix change due to higher contribution from high priced cigarettes). This would help in more than absorbing the excise...

VST Industries Ltd. is trading below all available SMAs

VST Industries Ltd.

16 Apr 2020

238.40

0.06%

VST Industries

Buy: VST Industries Ltd.

Target

ICICI Securities Limited

With a wide presence at the lower price points and strong distribution of 1 million retail outlets, VST's brand has been especially popular in West Bengal, Bihar, Uttar Pradesh, Andhra Pradesh and Telangana contributing ~60% of volumes. The company's fundamentals are driven by a strong capital structure, steady cash flow and consistent dividend payment. VST has a robust margin profile with its operating margin at 32.2% for FY19. With robust volume growth in 9MFY20 change in product mix towards high priced cigarettes, we maintain our BUY rating on the stock. We value the...

VST Industries Ltd. is trading below all available SMAs

VST Industries Ltd.

23 Jan 2020, 12:00AM

238.40

0.06%

VST Industries

Buy: VST Industries Ltd.

Target

ICICI Securities Limited

Stable tax environment helps robust volume growth The company witnessed volume growth of ~10% in 9MFY20 on account of a stable tax environment over the last two years post implementation of GST structure. In the last two years, VST has changed its product mix in favour of | 5-6 price point, which now accounts for 55% of the portfolio. Moreover, Edition brand at | 10/stick accounts for 5% of volumes. Also, the company has been gaining market share from the industry leader as reflected in its volume growth, which is over & above industry average volume growth of...

VST Industries Ltd. is trading below all available SMAs

VST Industries Ltd.

05 Nov 2019

238.40

0.06%

VST Industries

Buy: VST Industries Ltd.

Target

ICICI Securities Limited

Dealer stocking in previous quarter leads to sales moderation The company witnessed 20% YoY volume growth in Q1FY20 on account of dealer stocking of a week of additional inventories before the Budget in anticipation of introduction of excise duty. As a result, volume growth moderated during the quarter with correction in inventory at the dealer level. In the last two years, the company has changed its product mix in favour of | 5-6 price point, which now accounts for 60% of the portfolio. Moreover, Edition' brand at | 10 /stick accounts for 5% of volumes. We maintain our...

VST Industries has lost -25.86% in the last 1 Year

VST Industries Ltd.

29 Jul 2019

238.40

0.06%

VST Industries

Buy: VST Industries Ltd.

Recommendation Target

ICICI Securities Limited

Dealer stocking before Union Budget leads to increased sales With 20% volume growth during the quarter, the company posted one of the strongest quarters in the last five years. However, strong volumes have been led by dealer stocking of a week of additional inventories before the Budget in anticipation of introduction of excise duty. We believe Q2FY20 would witness moderation in volume growth with correction in inventory at the dealer level. In the last two years, the company has changed its product mix in favour of | 5-6 price point, which now accounts of 60% of the...

VST Industries has lost -25.86% in the last 1 Year

VST Industries Ltd.

07 May 2019

238.40

0.06%

VST Industries

Hold: VST Industries Ltd.

Recommendation Target

ICICI Securities Limited

With stable taxation post July 2017, cigarette companies are seeing strong volume growth. VST's cigarettes volume growth has been ~8% in FY19. Moreover, ITC's selective price hike in 64, 69 mm categories has provided further manoeuvrability to VST to increase prices. Moreover, it is steadily increasing its product mix in favour of high priced | 6 & | 10 cigarettes. Currently, Edition' & Total' contribute 20% of volumes. We expect volume growth of 4% each in FY20E, FY21E, respectively, driven by a favourable product mix towards high priced cigarettes (69 mm & above category). We...

VST Industries has lost -25.86% in the last 1 Year

VST Industries Ltd.

06 May 2019

238.40

0.06%

VST Industries

Buy: VST Industries Ltd.

Target

ICICI Securities Limited

VST Industries has lost -25.86% in the last 1 Year

VST Industries Ltd.

25 Jan 2019

238.40

0.06%

VST Industries

Buy: VST Industries Ltd.

ICICI Securities Limited

Revenue (net of GST) for the quarter increased 22.9% YoY to | 315.4 crore, above our estimate of | 303.1 crore. Cigarette sales increased 25% to | 245 crore led by 8% volume growth and a change in product mix. Contribution of higher priced cigarettes to volumes has increased from 20% to ~27% during the quarter. The company has not taken any material price increase during the quarter. Tobacco sales increased 16.6% to | 70 crore in Q3FY19 The sales volume contribution of 64 mm category was 40% whereas...

VST Industries has lost -25.86% in the last 1 Year

Is VST Industries Ltd. worth buying?

671 Votes:

Buy 74.66%

Sell 11.03%

Hold 14.31%