VST Industries Ltd. was on investor radar after DMart founder Radhakishan Damani bought an additional 1.4% stake in the cigarette maker through open market deals on Jan. 2.
Following the deal, on Tuesday, the stock hit the upper circuit and closed 20% higher, at Rs 4,060.1 apiece. However, on Wednesday, the scrip ended 1.7% lower, at Rs 3,993 per share.
The ace investor mopped up 2.22 lakh shares in the company for an aggregate amount of Rs 75.6 crore, according to the bulk deal data on the BSE.
SBI Mutual Fund also acquired 2.25 lakh shares, which represents a 1.45% stake in the company. DSP Mutual Fund and HDFC Mutual Fund pared their stakes by 1.61% and 1.29%, respectively.
Damani has been steadily increasing his stake in the company over the years, with the first acquisition of a 25.95% stake in March 2016 through his investment vehicle, Bright Star Investments.
Fundamental Check-Ins
VST Industries posted a compounded annual growth rate of 10% between FY16 and FY23. However, the Ebitda margins have decelerated from 26.9% in FY16 to 22.9% in FY23.
In recent quarters, too, the company's margins have continued to slide. On the upside, the company remains debt-free as of Sept. 30, 2023.
Damani's Top Holdings
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