Consumer Durables News

V-Guard Industries stocks: Buy V-Guard Industries, target price Rs 250: ICICI Securities


has buy call on V-Guard Industries with a target price of Rs 250. The current market price of is Rs 242.25.




., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 10462.73 Crore) operating in Consumer Durables sector.
Industries Ltd. key Products/Revenue Segments include Electricals, Consumer Durables, Electronics & Mechanical Components, Scrap, Other Operating Revenue and Sale of services for the year ending 31-Mar-2022.

Financials

For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 1023.41 Crore, down -3.62 % from last quarter Total Income of Rs 1061.85 Crore and up 79.84 % from last year same quarter Total Income of Rs 569.06 Crore. Company reported net profit after tax of Rs 53.37 Crore in latest quarter.

Investment Rationale
The brokerage models V-Guard to report a PAT CAGR of 21.5% over FY22-FY24E and RoCE at >22% over FY23E-FY24E. It remains positive on its business model due to the strong competitive advantages it enjoys in South India, and growth potential across segments. Maintain ADD with a DCF-based target price of Rs250 (implied P/E 32x FY24E).


Promoter/FII Holdings
Promoters held 55.88 per cent stake in the company as of 30-Jun-2022, while FIIs owned 12.39 per cent, DIIs 18.09 per cent.

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