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Why is Vadilal Industries' stock buzzing?
Vadilal Industry has been buzzing on the back of full excise duty cut on ice creams and the company's expansion plans. CNBC-TV18’s research analyst, Varinder Bansal says that the stock has gained about 38% in a week.
Vadilal Industryhas been buzzing on the back of full excise duty cut on ice cream and the company's expansion plans. CNBC-TV18's research analyst, Varinder Bansal says that the stock has gained about 38% in a week.
The company is expending about Rs 21 crore on its expansion. This includes setting up a new ice-cream manufacturing plant in Uttaranchal. The company has plans for processed food divisions also. 30% of the total cost involved in this project will be financed through internal accruals. The rest 70% is likely to be financed through loans. The company is already in talks for a loan with financial institutions.
Vadilal Industries
Stock up 38% in a week
On back of full excise cut in budget & expansion plans
Fully exempt from excise duty which was 16
Has expansion plans worth Rs 21.5 cr
On the valuation front the company is not much attractive because the operating margin is at 1%.
The company is expending about Rs 21 crore on its expansion. This includes setting up a new ice-cream manufacturing plant in Uttaranchal. The company has plans for processed food divisions also. 30% of the total cost involved in this project will be financed through internal accruals. The rest 70% is likely to be financed through loans. The company is already in talks for a loan with financial institutions. 
