Geojit BNP Paribas' research report on V-Guard Industries
VGIL‟s Q3FY17 revenue grew by 10% YoY, led by strong growth in Pumps which grew by 38%, Fans 15% and Stabilizers 9%. While other products segments like UPS grew by 5%, Appliance 8%, Electric water heater 6% and cables & wires 6% YoY reported a stable growth. Revenue from non-south market grew by 23% YoY led by strong festive sales.
Outlook
In the long term, benefits of GST and shift of business to more formal economy, the organised players like VGIL is expected to benefit by higher market share gain. Considering strong earnings outlook we value VGIL at a P/E to 30x (27x) on FY19E with a target price of Rs231 and we upgrade to Accumulate from Hold.
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