Two shares in billionaire investor Radhakishan Damani’s portfolio have hit the radar at brokerage ICICI Direct. The brokerage firm has maintained a buy call on one of the shares and recommended hold on the other.
ICICI Direct has recommended a purchase with a target price of Rs 1800 at Rs 1800 and proposed to own VST Industries, the stock in which the known investor marginally raised its position in the quarter ending March 2022, with a target price of Rs 3425. investor had added around 12,000 shares in VST Industries during the January-March quarter.
Mæglerhuset estimates 17% upside in United Breweries and 6% on Hyderabad-based cigarette company VST Industries. The target price and estimates are placed on the closing prices on 27 April and the duration is 12 months.
According to the company’s applications, RK Damani owns 1.2% of the shares or 3,195,834 shares in United Breweries and 4,993,204 shares, which together provide 32.3% of the shares in VST Industries.
ICICI Direct at United Breweries
As the company experienced the highest volume ever in March 2022, the brokerage firm expects momentum to continue in Q1FY23 (high season for breweries). UBL is also expected to see a normalized peak quarter after a period of three years, it stressed.
“Due to a long-term growth history in the industry and a well-run company with MNC origins, we maintain our BUY rating on the stock,” it said.
ICICI Direct at VST Industries
VST’s share price has outperformed the market with only 6% return in the last five years (from 3048 RS in April 2017 to 3229 RS in April 2022), the brokerage firm noted.
Although the volume of the cigarette industry has reached levels before Covid, we believe that excessive tariffs, the advent of e-cigarettes and regulatory frameworks will keep volume growth at a low single-digit level in a stable tax scenario, says ICICI Direct. “We continue to maintain our HOLD rating on the stock,” it added.
According to the latest stock holdings, the billionaire investor publicly holds 14 shares in the quarter ending March. According to trendlyne.com, the value of these shares is estimated at around Rs 170,926.0 core per share. April 29