Buy V-Guard Industries; target of Rs 540: Sharekhan

Sharekhan's research report on V-Guard Industries

V-Guard currently trades at 63x/48x/41x its FY2025/2026/2027 EPS, respectively. Strong performance across segments boosted revenues growth to 13.0% in FY24, and margin improvement was driven by a decline in commodity costs and operational efficiency from the stabilizer plant in Pantnagar. Sunflame business integration progressed smoothly in FY24 with the set up of professional and strong leadership at Sunflame. We expect Revenue/PAT CAGR of ~17%/~28% over FY2024-FY2027E EPS.

Outlook

We maintain a Buy on V-Guard Industries with a revised PT of Rs 540, factoring in the growth from the Electronics, Electricals, and Kitchen appliances segments.

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