Thursday, October 1, 2009

VST Industries Ltd.

Sales have grown from around Rs.3143 million to around Rs.3710 million from 2000 to 2009. Profits have grown from around Rs.156 million to around Rs.618 million from 2000 to 2009.


VST Industries Ltd. has been earning a return of at least 21% on its net worth per year from 2000 to 2009. It has earnings per share of around Rs.40 in the last 12 months.


VST Industries Ltd. has a cash and bank balance of around Rs.137 million. It has investments of around Rs.1k million. It has a net worth of around Rs.2k million. It has a market capitalization of around Rs.6k million.


At a market price of around Rs.448.55 and earnings of around Rs.40 the initial rate of return is around 9 per cent ! The value of the company according to me should be at least Rs.800.


VST Industries Ltd. is a Tobacco company and has no debt. 

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