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Last Updated : Dec 18, 2018 02:54 PM IST | Source: Moneycontrol.com

Buy V-Guard Industries; target of Rs 248: SPA Securities

SPA Securities is bullish on V-Guard Industries has recommended buy rating on the stock with a target price of Rs 248 in its research report dated December 17, 2018.

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SPA Securities' report on V-Guard Industries


V-Guard's revenue base is very well diversified with stabilisers (19% of revenue), UPS (12%), C&W ( 30%), Pumps (12%), Water heaters (12%), and Fans (10%). Revenues are growing consistently at 15% annually very much in line with mgt. Guidance. In FY'19, due to exceptional event of heavy floods in Kerala, revenue growth was a tad lower at ~ 10% to Rs 1,232 crs. Kerala forms as high as 25% of the company's revenue. V-Guard has strong pipeline of new & innovative products developed through its R&D team. The company last year enetered air coolers business on pilot basis & has plans to launch the same pan-India in current year.


Outlook


We estimate earnings to compound at 33% annually over FY'18-'20. Strong double digit revenue growth (14% CAGR) & robust return ratios aided by debt free BS enables us to recommend BUY on the stock with PT of Rs 248 ( 45x FY'20 E EPS).


For all recommendations report, click here


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.

First Published on Dec 18, 2018 02:54 pm
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