Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

Buy VST Industries target Rs 4,130: ICICI Direct

ICICI Direct has a buy call on VST Industries at a price target of Rs 4,130|
Updated: Jul 04, 2017, 09.40 AM IST
ICICI Direct has a buy call on VST Industries with a target price of Rs 4,130.

The current market price of VST Industries is Rs 3,733.55.

Time period given by analyst is 12-15 months when VST Industries price can reach defined target.

VST industries would be the bigger beneficiary of the change in the indirect tax structure. With the abolition of excise duty and additional excise duty, net tax incidence for VST industries would come down by 8.3 per cent and to comply with the anti profiteering clause, the company would require taking price cut by 6 per cent.

State VAT has been replaced by GST and cess would replace specific excise duty. Though, the absolute tax rate on cigarettes has remained same but with the elimination of ‘Tax on Tax’ has reduced the tax liabilities for cigarettes companies.

ICICI Direct has increased its volume growth estimate from 2.5 per cent to 6 per cent for FY18E and from 3 per cent to 5 per cent in FY19E. This would translate in to EPS increase by 5.9 per cent to Rs 134.6 in FY18E and 9.1 per cent to Rs 164.6 in FY19E.

Also Read

ICICI Direct maintains hold on Time Technoplast, target price Rs 60

Buy Trent, target Rs 500: ICICI Direct

ICICI Direct recommends reduce on Avenue Supermarts, target price Rs 1450

Hold Pokarna, target Rs 140: ICICI Direct

ICICI Direct initiates coverage on Mahendra Logistics, target price Rs 415

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Disclaimer: This recommendation is analyst's own and does not represent those of & Please consult your financial advisor before taking any position in the stock/s mentioned.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service