Hold V-Guard Industries; target Rs 596: Nirmal Bang

Brokerage house Nirmal Bang has recommended hold rating on V-Guard Industries with a revised price target of Rs 596 in its July 19, 2013 research report.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney SME Special
moneycontrol.com

Home » News » Recommendations

Jul 22, 2013, 02.18 PM | Source: Moneycontrol.com

Hold V-Guard Industries; target Rs 596: Nirmal Bang

Brokerage house Nirmal Bang has recommended hold rating on V-Guard Industries with a revised price target of Rs 596 in its July 19, 2013 research report.

Like this story, share it with millions of investors on M3

Hold V-Guard Industries; target Rs 596: Nirmal Bang

Brokerage house Nirmal Bang has recommended hold rating on V-Guard Industries with a revised price target of Rs 596 in its July 19, 2013 research report.

Post Your Comments

Share Cancel

(more)

, Nirmal Bang |

Nirmal Bang's report on V-Guard Industries

"In Q1FY14, V Guard Industries registered strong, 28 percent YoY revenue growth to Rs. 408.2 crore and 7.8 percent QoQ. This was primarily driven by strong revenue growth of 31.1 percent YoY in the electronic segment (stabilizers, UPS and inverters) and 24.8 percent YoY in the electrical segment (cables & wires, water heaters etc). The Stabilizer (16.5 percent YoY) and Digital UPS (68.6 percent YoY) segments witnessed strong growth this quarter owing to increased demand for consumer durables in the summer season and frequent power outages. The company has also been able to take price hike to the tune of 3 percent during the quarter in across product segments. In Q1FY14, South market grew by 23 percent and non South market by 41 percent YoY. Non-South expansion continues at a healthy pace, now accounting for 30.7 percent of total revenues as compared to 27.8 percent a year ago."

"At CMP of Rs. 529, the stock is trading at a PE of 17.1x in FY14E and 12.4x in FY15E. With the advertisement expenses declining substantially during Q2FY14 and Q3FY14, also, the price hikes made across product categories 3 percent by the company in Q1FY14 will improve profit margins going forward. Operating leverage following higher sales volumes in other product categories, as the company expands into new markets, plus entry into new product segments like induction cook-top, may also ensure good profit growth. We are upbeat on the stock on the account of core business momentum remains robust with healthy EPS growth, cash flow generation and high RoEs. We have revised our target price of Rs. 596 per share at PE 14x FY15E (Rs. 535 per share). We recommend a "HOLD" rating and BUY on decline," says Nirmal Bang research report.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Hold V-Guard Industries; target Rs 596: Nirmal Bang

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login