Q1FY22 Result Update - VST Industries - ICICI Direct

VST reported strong cigarette volume recovery in Q1FY22.

- Sales were up 12.1% YoY; cigarette volumes grew 35%

- EBITDA was at Rs. 92 crore, down 7.4% YoY, with margins at 33.4%

- Consequent PAT was at Rs. 70.4 crore (down 7% YoY)

Key triggers for future price performance

- With Covid recovery & vaccination drive, mobility is expected to increase by H2FY22

- High priced brands' ('Total' & 'Edition') volume contribution to increase in future, which would lead to favourable product mix & margin improvement

- Duties & taxes on cigarettes are expected to remain stable given increasing prevalence of illicit & contraband cigarettes

- We expect dividend payout to increase to ~70% by FY23, which would translate into dividend yield of ~5% at the current price

For details, click on the link below: Link to the report

Shares of VST INDUSTRIES LTD. was last trading in BSE at Rs. 3423.4 as compared to the previous close of Rs. 3492.15. The total number of shares traded during the day was 706 in over 250 trades.

The stock hit an intraday high of Rs. 3502.05 and intraday low of 3423.4. The net turnover during the day was Rs. 2445453.

Source : Equity Bulls

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