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Buy V-Guard Industries: target of Rs 311: Sharekhan

Sharekhan is bullish on V-Guard Industries has recommended buy rating on the stock with a target price of Rs 311 in its research report dated May 27, 2021.

June 10, 2021 / 11:37 AM IST
An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

 
 
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Sharekhan's research report on V-Guard Industries


Healthy performance in Q4FY21 where revenues improved 58% y-o-y lead by broad-based growth across product categories along with OPM expansion on cost saving measures leading to higher net profit. Management expects to get back on to the growth path with a rebound in business environment and highlighted that demand expected to resume from Q2FY2022E and would like to grow at 15% per annum with a sustainable margin of 10-10.5%. The company’s strong balance sheet, cash flow and reputed brand along with strong business fundamentals provide comfort in the present environment.


Outlook


We retain Buy on V-Guard Industries Limited (V-Guard) with an unchanged PT of Rs. 311, considering its improving business operations.


For all recommendations report, click here


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first published: May 31, 2021 01:39 pm

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