Rs 150/Share Dividend: Mid-Cap FMCG Stock To Turn Ex-Dividend Tomorrow For 1500% Payout

Mid-cap firm VST Industries operates in the FMCG industry. The company's primary business is the production and marketing of cigarettes and raw tobacco, and it has manufacturing facilities in Hyderabad and Toopran (Telangana). The Vazir Sultan Tobacco Company Limited was established on November 10th, 1930, and its shares are traded on the National Stock Exchange of India Limited and BSE Limited.

VST Industries Dividend

The Board of Directors of the company have recommended a final dividend of Rs. 150/- per equity share of Rs. 10/- each. As per the data of BSE, VST Industries will trade ex-dividend on 4th August and due to the T+1 settlement cycle of the company the record date is also falling on the same date.

VST Industries has announced an equity dividend of 1500.00% at a face value of Rs 10, or Rs 150 per share, for the financial year ended March 2023. The dividend yield at the current share price of Rs 3769.90 is 4%. The company has a solid track record of dividend declarations during the past five years. According to Trendlyne's statistics, VST Industries Ltd. has issued 23 dividends since May 28, 2001.

VST Industries Financials

The company recorded revenue from operations of Rs 440.8 Cr in Q1FY24 up by 13.3% QoQ from Rs 389.1 Cr in Q4FY23. The company recorded an EBITDA of Rs 105.4 Cr in the quarter ended June 2023 up by 28.3% sequentially from Rs 82.1 Cr recorded in the quarter ended March 2023 whereas its EBITDA margin climbed 280bps from 21.1% to 23.9%. The net profit of VST Industries was Rs 83.7 Cr in the quarter under review up by 21.8% QoQ from Rs 21.1 Cr recorded in the previous quarter.

Commenting on the performance of the company Aditya Deb Gooptu, Managing Director & CEO, said, "We are witnessing a gradual improvement in the operating environment on the back of steady demand and anticipate seeing stronger rural recovery as monsoon is expected to be in a normal range. Though key raw material prices continue to be abnormally high, we are rationalizing our cost structures and placing great emphasis on innovation and digitization, to continuously deliver superior value to both our consumers and stakeholders."

VST Industries Share Price

On Thursday, the shares of VST Industries opened on the BSE at Rs 3859.95 apiece and while writing this copy the scrip was trading at Rs 3769.90 with a downside gap of 1.07% over the previous close of Rs 3810.80. The stock made a 52-week-high of Rs 3,865.40 on (25/11/2022) and a 52-week-low of Rs 2,912.55 on (14/02/2023). During Q1FY24, the company recorded promoter shareholding of 32.16%, FIIs stake of 1.55%, DIIs stake of 17.24%, public stake of 48.69% and others stake of 0.37%.

VST Industries Share Price Target

"VSTIND is currently trading near 3752 levels. The momentum indicator RSI is currently at 65 levels. Stock is trading above all the important Moving averages. The stock appears to be positively skewed on the weekly chart. Strong support is placed near 3675 levels which is also 20 Day EMA and a consolidation level of the stock. We can also witness a small resistance close to 3880 levels, however, prices may strengthen in the coming weeks if the stock sustains above the mentioned resistance. According to the price movement on the daily chart, the stock has a strong base around the 3675-3700 zones. The traders and investors can buy near the support zone with a proper stop loss at 3555 levels for the target of 3880 and above," said Deven Mehata Equity Research Analyst Choice Broking.

Disclaimer

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