Radhakishan Damani Portfolio Stock Declares Rs 150/Share Dividend: Buy The FMCG Stock?

As of Monday's closing session, VST Industries, an FMCG firm, has a market capitalization of Rs 6,270.27 Cr. The company's registered office is located in Hyderabad's Azamabad. The company's shares are listed on BSE Limited and National Stock Exchange of India Limited. The company's main business operations are the production and distribution of cigarettes and unmanufactured tobacco. It has manufacturing facilities in Hyderabad and Toopran, Telangana. Financial reports for the quarter and year ending March 31, 2024, have been released by VST Industries. A dividend recommendation of Rs 150 per share has also been issued.

VST Industries Dividend

"The Board of Directors recommend dividend for the financial year 2023-24 Rs 150/- (2022-23 - Rs 150/-) per Equity Share of Rs 10 each. The payment is subject to approval of the shareholders at the ensuing Annual General Meeting of the Company," said the company in a regulatory filing.
If approved by the shareholders at the 93rd Annual General Meeting, the dividend will be paid out within 30 days of the approval.

VST Industries Q4 Results

On a standalone basis, the company reported revenue from operations of Rs 475.98 crore in the March 2024 quarter up 57.75% from Rs. 301.74 crore in the March 2023 quarter. Its net profit stood at Rs. 88.20 crore in Q4FY24 up 28.38% from Rs. 68.70 crore in Q4FY23. EBITDA reached Rs. 126.12 crore in the quarter under review up 28.51% from Rs. 98.14 crore in the year-ago quarter.

Net profit for the entire fiscal year dropped 7.77% to Rs 301.57 crore in the year that ended in March 2024 from Rs 326.98 crore in the year that ended in March 2023. Sales climbed 9.85% to Rs 1417.20 crore in the fiscal year that ended in March 2024 from Rs 1290.11 crore in the fiscal year that ended in March 2023.

VST Industries Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said, "VSTIND is currently trading at Rs 4111. A rounding bottom formation, accompanied by significant trading volume, has recently emerged on the daily chart, suggesting a potential upward movement towards Rs 4555 & Rs 4666. Notably, substantial support is observed near Rs 3850. Moreover, VSTIND is trading above key Exponential Moving Averages (EMAs), including the 200-day EMA, and indicating strong bullish momentum. The Relative Strength Index (RSI) stands at 78.46, signalling an upward trajectory and confirming increased buying momentum."

"Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover, further supporting bullish sentiment. To manage risk effectively, setting a stop-loss (SL) at Rs 3850 is advisable to protect against unexpected market reversals. A prudent strategy includes considering buying opportunities on market dips around Rs 4000. In summary, based on technical analysis and prevailing market conditions, VSTIND presents a promising buying opportunity for those targeting a Rs 4666 price objective, contingent upon implementing prudent risk management measures," the analyst further recommended.

Radhakishan Damani's Stake In VST Ind

According to the shareholding pattern of VST Industries for Q4FY24 available on BSE, ace investor Radhakishan Shivkishan Damani held 3,01,419 shares of the company in his portfolio which is 1.95% of the total paid-up share capital of VST Ind.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.