HDFC Securities is bullish on V-Guard has recommended buy rating on the stock with a target price of Rs 246 in its research report dated 01 Aug 2018.
HDFC Securities' research report on V-Guard
V-Guard’s revenues grew by healthy 19% (exp. 16%) despite an erratic summer impacting its summer portfolio. Non-South market (44% mix) continued to blossom with 30% growth, while South grew by 12%. EBITDA/PAT grew by 42/48% (exp. 41/45%). V-Guards new product launches, rebranding exercise, distribution expansion (non-South) and favourable base have resulted in consistent double digit growth in the recent quarters.
We foresee EPS CAGR of 30% over FY18-21E. We value V-Guard at 35x P/E on Jun-20EPS, with TP of Rs 246 (Rs 240 earlier). We maintain BUY.
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