VST Industries Upgraded to 'Hold' by MarketsMOJO, Offers High Dividend Yield

VST Industries, a midcap company in the cigarettes/tobacco industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on several factors, including the company's high management efficiency with a ROE of 32.67%, and a low Debt to Equity ratio of 0 times.
The technical trend for VST Industries is currently sideways, indicating no clear price momentum. This trend has worsened since November 13, 2024, with a return of only 0.59%. However, the company's ROE of 21.5 makes it a very attractive valuation with a 4.7 Price to Book Value.

Despite the stock trading at a premium compared to its historical valuations, it has still generated a return of 6.94% in the past year. However, profits have fallen by -20.9% during this time. On the positive side, the company offers a high dividend yield of 4.3% at its current price.

Mutual funds have decreased their holdings in VST Industries this quarter, now holding only 7.48% of the company. This could be due to the company's poor long-term growth, with net sales growing at an annual rate of 3.94% and operating profit at 6.68% over the last 5 years.

In the latest quarter, VST Industries reported negative results, with the lowest operating cash flow at Rs 167.02 crore and a fall in PAT of -29.9%. PBDIT was also at its lowest at Rs 67.61 crore.

Overall, VST Industries has underperformed the market in the last year, with a return of only 6.94% compared to the market's 25.57%. While the company has some positive aspects, such as high management efficiency and a low Debt to Equity ratio, it also has some concerning factors, such as poor long-term growth and recent negative results. Investors may want to hold off on investing in this midcap company until there is more positive momentum and growth in the industry.