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

has add call on with a target price of Rs 250. The current market price of Industries is Rs 225.5. Time period given by analyst is one year when . price can reach defined target.



V-Guard Industries Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 9783.06 Crore) operating in Consumer Durables sector.

V-Guard 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 PAT CAGR of 21.5% over FY22- FY24E and RoCE to be >22% over FY23-24. We remain positive on V-Guard’s business model due to strong competitive advantages 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.