VST Industries Outperforms Larger Listed Peers
The maker of the Charminar brand is giving a higher return on investment.
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VST Industries Ltd. is giving its two larger listed peers a run for their money.
While the share price of VST Industries has risen 66 percent in the last one year, it 12-month trailing price-to-earnings ratio is still lower than that of ITC Ltd. and Godfrey Phillips India Ltd.
ITC, the country’s largest cigarette maker, has risen 35 percent during the period, while Godfrey Phillips, which makes and sells Marlboro in India, has gained 1 percent.
VST Industries is trading at a price-to-earnings ratio of 24.7 times compared to 33 times for ITC and 41.4 times for Godfrey Phillips.
VST Industries is also the only one to see its cigarette business grow. For the first 9 months of financial year 2017, VST’s earnings from cigarette business have risen 18 percent in comparison to a 6 percent fall for ITC and a 42 percent decline for Godfrey Phillips.