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Damani's "Boring" Bets: Tobacco & Beer Print Cash
27 May
Summary
- Damani holds 29.1% in VST Industries, a top cigarette maker.
- He also has 1.2% in United Breweries, India's largest beer firm.
- Both are habit-led, cash-rich, and stable businesses.
Radhakishan Damani, known for his investment acumen, holds substantial stakes in VST Industries and United Breweries Ltd (UBL). His 29.1% share in VST Industries, a prominent cigarette manufacturer, represents a significant part of his portfolio, valued at approximately Rs 1,277 cr as of May 24, 2026.
VST Industries, operating since 1930, is India's third-largest cigarette player. The company is debt-free, maintains high dividend payouts (75% in FY25), and shows strong cash flow conversion. Despite recent margin pressures, it reported a 61% EBITDA growth in FY26.
Damani also maintains a 1.2% stake in United Breweries, India's largest beer maker, valued at Rs 428 cr. UBL, home to brands like Kingfisher, has shown strong sales growth, compounding at 17% over five years, and robust net profit growth of 29%.
Both VST and UBL are characterized by habit-led demand, strong pricing power, and minimal capital expenditure requirements. These traits align with Damani's investment strategy of favoring stable, cash-generating businesses resilient to economic fluctuations.
