According to reports from The Financial Express, ace investor Radhakishan Damani holds a 29.1% stake in VST Industries Ltd, the maker of Charms and Total cigarettes, and a 1.2% holding in United Breweries Ltd, India's largest beer maker. As reported by The Financial Express, these positions have been held for over 10 years, with Damani refusing to sell despite the attractive valuations. The March 2026 shareholding disclosures show these investments as the second and third biggest positions in his publicly disclosed portfolio after Avenue Supermarts. Recent filings show that Parag Parikh ELSS Tax Saver Fund also acquired a 1.9% stake in the company, while Damani's arm Derive Trading and Resorts holds around 1.2% in UBL through Bright Star Investments Pvt Ltd.
As reported by The Financial Express, VST Industries Ltd is the third largest cigarette player in India with a market cap of around ₹4,388 crore and a volume share of close to 8%. The company is debt-free with zero borrowings for over a decade and maintains a dividend payout of 65-80% with FY25 payout at 75%, giving the stock a dividend yield of about 4.7%. The company reported FY26 net cigarette revenue growth of 25%, EBITDA growth of 61% and net profit of ₹292.3 crore, with the stock jumping 19% in a single session on the turnaround news. The company's 10-year average ROE stands at 30%, with recent 3-year ROE at 23%, though it slipped to about 16.5% last year as profits compressed. Operating margins remain in the 20-23% range, while cash flow from operations as a percentage of operating profit was 101% in FY25 - the kind of conversion most consumer companies can only dream about.
According to The Financial Express, United Breweries Ltd commands a beer market share north of 50% across most major states with a market cap of around ₹34,775 crore. The company's brand stable includes Kingfisher Premium, Ultra, Strong, Ultra Max, Heineken Silver and Amstel Bier, with the company posting sales growth of 17% CAGR over five years and net profit growth of 29% CAGR during the same period. Recent financials show the company bounced back from a tough patch with sales compounding at 17% CAGR over five years, while EBITDA and Net Profit clocked impressive CAGRs of 16% and 29% respectively. The company's three-year sales growth stands at 15%, with sales of ₹9,240 crore being the highest in the company's history. Management has guided for 6-7% volume growth over the medium term and operating margins have successfully crept back to around 9% from lows.
As reported by The Financial Express, VST Industries trades at a PE of 15x, the same as the current industry median, while United Breweries trades at a PE of 93x compared to the industry median of 32x. The analysis suggests that VST Industries is valued at a discount to its long-term average despite being almost debt-free and paying out three-quarters of profits, while United Breweries commands a premium due to its scarcity as a large listed alcohol-beverage play in India. The 10-year median PE for UBL is 109x compared to the industry median of 21x, with the market paying up for the scarcity premium and Heineken parentage. For VST Industries, the current PE of 15x is the same as the 10-year median, while the broader industry has historically traded at about 22x for the same period.
