Radhakishan Damani raises stake in this cigarette maker in Q4

Billionaire investor Radhakishan Damani has raised his stake in Hyderabad-based cigarettes company VST Industries in the March 2022 quarter. Damani purchased around 12,000 equity shares of VST Industries in Q4 through his investment arm Derive Trading and Resorts Pvt Ltd.

Damani's Derive Trading raised its stake to 4.76% in the January-March quarter from 4.68% equity in the previous quarter ending December 2021.

Shareholding pattern for the March quarter shows that Damani owned 1.63% stake or 2,51,484 shares which remained unchanged from the December quarter. His investor arm Bright Star Investments Private Ltd, also held as25.95% stake in Q4. Damani's total stake in the firm rose to 32.34% stake in Q4 from 32.26% equity in the previous quarter.

Holdings of promoters of the firm remained unchanged at 32.16% in the March quarter. FIIs reduced their holdings from 1.81% in the December quarter against 1.75% stake in the March quarter.

However, the number of FII investors rose from 56 to 60 in the last quarter. Mutual funds too raised their holdings in the company from 14.61% in December quarter to 14.92% in the March quarter.

VST Industries stock ended 1.46% higher at Rs 3212.35 on April 13 against the previous close of Rs 3166.25 on BSE. The share stands higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

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The stock has lost 2.93% in one year but risen 1.45% in 2022. However, it has gained 11.32% in a month and 2.64% in a week.

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Market cap of the firm on April 13 stood at Rs 4960.49 crore on BSE. The share hit a 52-week high of Rs 3893.95 on October 18, 2021 and a 52-week low of Rs 2786 on February 25, 2022.

VST Industries reported a net profit of Rs 82.72 crore for the third quarter ended December 31, 2021 as against Rs 73.71 crore for the corresponding quarter a year ago.

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Sales rose 14.54% to Rs 328.24 crore in Q3 of last fiscal against Rs 286.56 crore in the corresponding quarter of the previous fiscal.

Operating profit excluding other income climbed 9.13% to Rs 109.08 crore in the December quarter against Rs 99.95 crore in Q3 of FY20.

VST Industries Limited is engaged in manufacturing and trading of cigarettes containing tobacco and unmanufactured tobacco products. The company operates through tobacco and related products segment. Its brands include Total, Editions, Charms, Special and Moments.

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