Buy VIP Industries with target of Rs 960: Rajesh Agarwal

Buy VIP Industries with a target of Rs 960, says Rajesh Agarwal, Head of Research at Eastern Financiers.

Agarwal told CNBC-TV18, "We can buy VIP Industries with a stop loss of Rs 840 and target of Rs 960. The reason for which we have selected the stock is this company is a leading luggage manufacturer in India, has a strong brand, huge distribution network." He further added, "Recently they have launched Carlton brand which is again is a high margin business, high premium product. They are planning to launch premium ladies handbag in next year, which will add immensely to the bottom line. They have around 60% market share in India and have presence in host of foreign countries also like Hong Kong, Russia China, Belgium, Iceland etc. At this point of time valuation might seems to be a bit stretched but considering brand portfolio and the margins which the company enjoys I think one can buy this stock for a target of Rs 960 in the short term." Click HERE to know the rules and follow the score card