Buy the FMCG Stock When Radhakishan Damani Portfolio Stock Announces A Dividend of Rs. 150 Per Share?
VST Industries, an FMCG company, had a market valuation of Rs 6,270.27 crore as of Monday’s closing session. Hyderabad’s Azamabad serves as the location of the company’s registered office. The National Stock Exchange of India Limited and BSE Limited both list the company’s shares.
The manufacturing and distribution of cigarettes and unprocessed tobacco are the company’s primary commercial activities. Its production plants are located in Toopran, Telangana, and Hyderabad. VST Industries has filed its financial results for the quarter and year ending March 31, 2024. There has also been a suggestion for a dividend of Rs. 150 per share.
“The Board of Directors recommends a dividend of Rs. 150/-per equity share, valued at Rs. 10, for the fiscal year 2023–2024 (2022–2023). The payment is contingent to shareholder approval at the business’s next annual general meeting, the company said in a regulatory statement.
The dividend will be distributed within 30 days of the 93rd Annual General Meeting’s approval by the shareholders.
Q4 Results for VST Industries
Standalone, the company’s income from operations increased by 57.75% to Rs. 475.98 crore in the March 2024 quarter from Rs. 301.74 crore in the same quarter of 2023. Its net profit increased by 28.38% from Rs. 68.70 crore in Q4FY23 to Rs. 88.20 crore in Q4FY24. EBITDA increased by 28.51% to Rs. 126.12 crore in the reviewed quarter from Rs. 98.14 crore in the same quarter last year.
From Rs 326.98 crore in the year that ended in March 2023 to Rs 301.57 crore in the year that ended in March 2024, net profit for the full fiscal year decreased by 7.77%. Sales increased 9.85% from Rs 1290.11 crore to Rs 1417.20 crore in the fiscal year that concluded in March 2023 to the fiscal year that ended in March 2024.
Target Share Price for VST Industries
Choice Broking’s Equity Research Analyst, Deven Mehata, said, “VSTIND is presently trading at Rs 4111.” On the daily chart, a rounding bottom formation with substantial trading volume has just surfaced, indicating a possible upward trend towards Rs 4555 & Rs 4666. Notably, there is strong support seen close to Rs 3850. Additionally, VSTIND is showing significant bullish momentum by trading above important Exponential Moving Averages (EMAs), such as the 200-day EMA. At 78.46, the Relative Strength Index (RSI) indicates an upward trend and validates heightened purchasing activity.
Furthermore, a positive crossing is shown by the Stochastic Relative Strength Index (Stoch RSI), which lends further credence to the optimistic outlook. It is suggested to establish a stop-loss (SL) around Rs 3850 to guard against unforeseen market reversals in order to efficiently manage risk. A wise tactic would be to look for chances to purchase during market declines of about Rs 4000. In conclusion, VSTIND offers a good purchasing opportunity for investors aiming for a price goal of Rs 4666, based on technical analysis and current market circumstances, provided they take appropriate risk management precautions, the analyst said.
The Interest Of Radhakishan Damani In VST Ind
Ace investor Radhakishan Shivkishan Damani possessed 3,01,419 shares of the firm in his portfolio, which is 1.95% of the entire paid-up share capital of VST Ind., according to the ownership pattern of VST Industries for Q4FY24 that is accessible on the BSE.
