Why Vita Group’s Share Price Is Up 24% Today

At time of writing, Vita Group Limited [ASX:VTG] is up 22.4% today, trading at $1.065 per share.

Vita Group has a diverse range of business interests, operating Telstra stores and Business Centres, as well as providing ICT solutions, clothing and skincare products and stores.

The rise in its share price offsets a small portion of some steep losses sustained this year, down from a high of $1.91 on January 16:

Vita group Ltd chart

Source: marketindex.com.au

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Vita Group’s share price rises on positive half year

Vita Group’s share price reacted to a positive HY forecast estimating EBITDA of between $23 million and $24.5 million. This is up 15% to 23% on the previous year.

As a result, the stock price posted its highest intraday per cent gain since August 2017.

Where to for Vita from here?

While it has suffered from a year long slide, Vita Group’s P/E ratio now sits at potentially attractive 6.2.

It has also recently offered a fully franked dividend of $.044.

Finally, its return on equity of 24.1% is actually quite strong for the sector it operates in with a median of 12.2%.


Ryan Clarkson-Ledward,
Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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