Hold V-Guard Industries; target of Rs 185: Geojit BNP Paribas

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26 Aug, 2025 12:21

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Geojit BNP Paribas' research report on V-Guard Industries

The extent of the impact from de-stocking lead by GST was completely unanticipated. Q1FY18 Revenue & PAT has declined by 2% & 46% YoY respectively. Similarly EBITDA margins declined by 570bps YoY to 5.8%, additionally impacted by higher employee cost and one-off expenses. Current headwinds like dealer discounts might continue for one more quarter, but post which the historical Revenue & EBITDA growth will come back.

Outlook

We value VGIL at 34x P/E on FY19E with a target price of Rs185, while given limited upside in stock prices we downgrade to Hold from Accumulate.

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