Geojit recommended hold rating on V-GUARD Industries with a target price of Rs 207 in its research report dated February 05, 2019.
Geojit's research report on V-GUARD Industries
V-Guard Industries Ltd (VGIL) is one of the leading players in electrical consumer durables space. Major product segment includes Stabilizers, Cables & Wires, UPS, Pumps and Electrical Appliance. Q3FY19 revenue grew by 12% but PAT declined by 6% YoY. EBITDA margin fell by 180bps YoY to 7.6% on account of volatility in commodity prices & INR depreciation.
We roll forward to FY21E and value VGIL at 34x, but given premium valuation and near-term pressure on margins we downgrade to “Hold” from Accumulate with a target price of Rs207.
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