JM Financial is bullish on V-Guard Industries has recommended buy rating on the stock with a target price of Rs 255 in its research report dated June 01, 2018.
JM Financial's research report on V-Guard Industries
V-Guard Industries (V-Guard) unveiled a new brand identity in Feb’18 reflecting its evolution into a “new-generation, technology-driven smart organisation with a pan-India presence”. Adjusted for spends on this initiative (INR 360mn in 4QFY18), its EBITDA/net income grew 23%/34% YoY. Revenue grew 13% YoY (like-to-like) during the quarter, led by digital UPS, fans, wires and switchgears, while stabilisers/water heaters posted weak growth on a strong base in 4QFY17.
Management continues to guide for 15% sales growth in the medium term along with improved gross margins. We remain positive on stock and maintain BUY. Our TP is INR 255, implying 16% upside.
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