Geojit recommended accumulate rating on V-GUARD Industries with a target price of Rs 225 in its research report dated June 08, 2018.
Geojit's research report on V-GUARD Industries
V-Guard Industries Ltd (VGIL) is one of leading player in Electrical consumer durables space. Its major product segment includes Stabilizers, cables & wires, UPS, pumps and Electrical appliances. Q4FY18 reported revenue grew by 8%, while PAT adjusted for one-off advertisement spends of Rs35cr, was up 40% YoY. Gross margins improved by 170bps YoY. EBITDA margins declined by 360bps YoY to 5.7%, due higher advertisement expenses.
We value VGIL at 36x P/E (38x) on FY20E considering the impact on earnings in Q4FY18. Considering recent sharp correction in stock prices, we upgrade to Accumulate from Hold with a target price of Rs225.
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