Bonus Issue Soon: Tobacco Stock Likely To Reward Free Shares After Rs 150/Sh Dividend

Mid-tier company engaged in tobacco sector, VST Industries Ltd slipped 1.24% in trade today to Rs 4125.95 per share. VST Industries informed today about its upcoming meeting of Board of Directors scheduled to be held on July 25 to consider and approve financial results. VST Industries may also consider issue of bonus share in the July 25, 2024 meeting. Earlier this year, it recommended a final dividend of Rs 150/- per equity share of Rs 10/- each and fixed June 14, 2024 as the record date. VST Industries shares gained over 15% in last 6-months and soared over 14% in last 1-year. More details below:

VST Industries Ltd To Consider Financial Results On July 25: May Consider Bonus Issue On July 25: As per the regulatory filing of VST Industries Ltd issued as on July 18 post market hours, "we inform that a Meeting of the Board of Directors of the Company will be held on Thursday, July 25, 2024 inter-alia to consider and approve the Unaudited Financial Results of the Company (Standalone) for the quarter ended June 30, 2024."

VST Industries May Consider Bonus Share On July 25: Pursuant to Regulation 29(1) & 29(2) of SEBI (Listing Obligations & Disclosure Requirements), Regulations 2015, it is hereby informed that the Board of Directors of the Company may consider issue of Bonus Shares in the aforesaid Board Meeting."

VST Industries Share Performance: VST Industries shares declined over 1% in last 1-month, gained 22% year-to-date, and zoomed 29% in last 5-years. In last 10-years, VST Industries shares offered return of 157%. The 52-week high price of VST Industries share on BSE is Rs 4522.45 per share (as on 13/06/2024) and 52-week low price is Rs 3159.90 per share (as on 26/10/2023), respectively.

Radhakishan Damani Increases Stake In VST Industries: Ace investor Radhakishan Damani had bought Rs 86.26 crore worth of shares of VST Industries. As per reports, the DMart founder bought an additional 1.51% stake in VST Industries for Rs 86.26 crore via open market deals. Radhakishan Damani bought 2.33 lakh shares of VST Industries at Rs 3,689.96 per share. Damani picked 1.44% stake in January also and he has now 35.84% stake in VST, higher than promoters' stake of 32.16%.

VST Industries Dividend: According to the BSE filing of VST Industries as on April 26, 2024, "recommended a final dividend of Rs.150/- per equity share of Rs. 10/- each. The dividend if approved will be paid within 30 days of the approval of the shareholders at the ensuing 93rd Annual General Meeting." It fixed June 14 as record date.

VST Industries Dividend History: VST Industries announced 24 dividends since May 28, 2001. In last 1-year, VST Industries announced an equity dividend amounting to Rs 150.00 per share. At the current share price of Rs 4125.95 per share, VST Industries offers dividend yield of 7.26%.

VST Industries Financials: VST for the quarter ended March 31, 2024 announced its net profit at Rs 88.20 crore, up 28.38% as against Rs 68.70 crore announced in the corresponding quarter of last year. VST declared its sales grew 24.35% to Rs 374.13 crore for the quarter ended March 31, 2024 as against Rs 300.86 crore reported in the corresponding quarter ended March 2023. For the whole year, its net profit slipped 7.77% to Rs 301.57 crore for year ended March 2024 as against Rs 326.98 crore declared last year ended March 2023. Sales rallied 9.85% to Rs 1417.20 crore for the year ended March 2024 as compared to Rs 1290.11 crore declared during the previous year ended March 2023.

About: The Vazir Sultan Tobacco Company Limited was incorporated on 10th November, 1930, under the Hyderabad Companies Act No. IV of 1320 Fasli and now governed under the Companies Act, 1956/2013. The name of the Company was subsequently changed to VST Industries Limited on 30th April, 1983. The Company has a manufacturing facility at Hyderabad and Toopran (Telangana) and its principal activities are manufacture & sale of cigarettes and unmanufactured tobacco, according to its official website.

Disclaimer: The stock highlights bonus share and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.