V-Guard Industries Ltd. share price target

Sunflame's business declined 10% YoY amid higher competition, channel weakness, and portfolio refresh delays, while benefits from ongoing sales integration are expected to materialize progressively from FY27. Early signs of a warmer season and the IMD's forecast of an intense summer reinforce management's confidence in a strong Q4 performance. Price hikes, along with seasonal volume recovery, are expected to drive earnings acceleration in FY27, particularly in the Electronics and Consumer Durables segments. We revise our FY26E & FY27E EPS estimates downward by 3.3% and 12.0%, respectively, reflecting lower-than-expected revenue growth and a reset in margins based...

Revenue/EBITDA was 2%/3% above estimates. Q2 revenue grew 11% YoY, while EBITDA grew 18% YoY

V-Guard Industries Ltd (VGRD) is one of the leading players in the electrical consumer durables space. Major product segments include Stabilizers, Cables & Wires, UPS, Pumps and Electrical Appliances. In Q2FY26, revenue recorded a modest 3.6% YoY increase, constrained by an extended monsoon and subdued demand across summer-dependent categories such as AC stabilizers and fans. Gross margin rose to 37.6% (+170 bps YoY), supported by a favourable product mix and lower copper prices. However, EBITDA margin slipped to 8.1% (-40 bps YoY) due to reduced operating leverage. Sunflame business delivered 3.4% YoY growth, with integration progressing and synergy benefits anticipated over time....

V-Guard’s Q2 EBITDA beat our estimate by 4.4%, driven by stronger margins in Electricals and a sharp Sunflame recovery from all-time lows.

Revenue/EBITDA was 2%/6% below estimates. Q2 revenue grew 4% YoY while EBITDA declined 1% YoY

Revenue/EBITDA was 2%/17% below estimates. Q1 revenue declined 1% YoY while EBITDA/PAT lowered 21%/25% YoY

V-Guard Industries Ltd (VGRD) is one of the leading players in the electrical consumer durables space. Major product segments include Stabilizers, Cables & Wires, UPS, Pumps and Electrical Appliances. In Q4FY25, revenue grew 15% YoY, exceeding estimates, driven by strong growth in Electronics (+26% YoY), Electricals (+15% YoY), and the Consumer division (+12% YoY). However, the Sunflames' business declined by 24% YoY. EBITDA grew by 12% YoY, while EBITDA margins declined by 22bps YoY to 9.3% despite a 120bps YoY improvement in gross margins, largely due to higher...

V-Guard reported a strong set of Q4FY25 result which was partially overshadowed by muted numbers of Sunflame. We believe V-Guard did well led by Stabiliser business benefitting from strong demand for air conditioners.

Strong electronics growth continued for V Guard, supported by an uptick in the electrical portfolio driven by higher copper prices. ECD grew in line with the industry, while Sunflame continued to underperform.

Standalone revenue growth of 9.9% to Rs. 1,185 crore was led by strong performance in electronics (27.9%), while electricals and consumer durables had a moderate growth of 1.2% and 8.1% respectively. Standalone net profit was flat, hit by lower operating margins.

We maintain a Buy on V-Guard Industries with a revised PT of Rs 540, factoring in the growth from the Electronics, Electricals, and Kitchen appliances segments. V-Guard currently trades at 63x/48x/41x its FY2025/2026/2027 EPS, respectively.

Standalone net profit grew by 55% y-o-y, aided by a 23.2% y-o-y revenue growth and a 130 bps y-o-y rise in OPM. Gross margin improved by 220 bps y-o-y

Q4 topline up 18% YoY, fuelled by Consumer Durables segment, as the early onset of summer boosts overall performance

GCPL: Consistent volume growth; cut to HOLD post rally. JSP: Valuations overdone; downgrade to HOLD. ACC: Strong margins; cut to HOLD on full valuations. Bonds Wrap: Fortnightly review. Currency Outlook: Fortnightly forex review. VGRD: In-line quarter. ORIENTEL: Slow quarter; Hyderabad plant to spur growth. SOMC: Lacklustre demand dulls performance. MTLM: Strong performance on fast ramp-up of MDF plant. SRCM: Healthy quarter, expensive valuations

Takeaways from V-Guard’s Q2FY24: (1) gross margin is reverting to pre-covid levels (+449bps YoY in Q2FY24), (2) B2B segments have maintained healthy growth whereas B2C segments (Consumer durables) continued to report dismal performance, and (3) there is improvement in working capital.