Veto Switchgears IPO attractively valued: KM Global
KM Global Finserv has come out with its report on "Veto Switchgears & Cable IPO". The research firm has recommended investors to subscribe to the issue as the company has demonstrated steady growth and is available at an attractive valuation relative to large players such as V-Guard.
December 05, 2012 / 13:04 IST
KM Global Finserv has come out with its report on "Veto Switchgears & Cable IPO". The research firm has recommended investors to subscribe to the issue as the company has demonstrated steady growth and is available at an attractive valuation relative to large players such as V-Guard.
Veto Switchgears is engaged in the manufacture and sale of wires & cables and electrical accessories. Its portfolio includes industrial cables, general & modular switches, ceiling fans, CFLs and other accessories. Veto’s products are manufactured in Hardwar, Uttarakhand and the installed capacity for wires & cables is 1.48 lakh bundles p.a. and for accessories is 3.8 crore pieces p.a. Its products are sold under the brands "VETO" and "VIMAL POWER" primarily in North-west India.Also Read: Tara Jewels to list shares on December 6Strengths & Expansion Plans
Large Network of Distributors - Veto can utilize its network of over 2,400 dealers to leverage its brand and introduce new products.Improving Margins - We believe that the operating margins should rise going forward as capacity utilisation improves from sub 30% levels due to higher working capital limits.We recommend that investors subscribe to Veto Switchgears & Cable’s IPO as the company has demonstrated steady growth and is available at an attractive valuation relative to large players such as V-Guard.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 on the attachment Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
