V-Guard Industries Ltd. share price target

We foresee EPS CAGR of 30% over FY18-21E. We value V-Guard at 35x P/E on Jun-20EPS, with TP of Rs 246 (Rs 240 earlier). We maintain BUY. V-Guards revenues grew by healthy 19% (exp. 16%) despite an erratic summer impacting its summer portfolio. Non-South market (44% mix) continued to blossom with 30% growth, while South grew by 12%. EBITDA/PAT grew by 42/48% (exp. 41/45%).

V-Guard reported ~8% growth (13% comparable growth) in net sales at ~| 659 crore mainly led by ~19% YoY growth in consumer durable segment. However, lower-than-expected growth in stabilisers (owing to muted sales of cooling products) and pump business translated into muted sales growth in the electronics and electrical segments, respectively During Q4FY18, a sharp rise in advertisement and promotional expenses by 3.8x YoY to | 64 crore negated the impact of saving...

We value V-Guard at 35x P/E on Mar-20EPS, with TP of Rs 253. We maintain BUY. V-Guards 4QFY18 like-like revenues grew by healthy 13/15% in 4QFY18/FY18 despite weak summer (exp. 15%). Weak summer also impacted slower gross margin expansion (174bps vs. 272bps exp.) coupled with higher than expected one-time ad expense (Rs 350mn). Adjusted EBITDA/APAT grew by 28/39%.

V-Guard reported 17% growth (23% comparable growth) in net sales at | 523.5 crore, (vs. I-direct estimate: ~| 525.5 crore) mainly led by 20.7% YoY growth in electrical, 17.9% YoY growth in consumer durable segment. We believe GST rate cut in many categories have propelled growth in the quarter. Electronics that mainly consists of stabilisers witnessed growth of 9.7% YoY The company witnessed a 130 bps YoY expansion in EBITDA margin to 9.4% (vs. I-direct estimate: 10.0%) in Q3FY18 mainly...

ICICI Securities Ltd | Retail Equity Research For V-Guard, strong sales growth during Q2FY18 was led by festive demand and re-stocking of inventory by dealers. According to the management, a partial recovery was seen of sales lost due to GST in Q1 while sales are expected to fully recover in the upcoming quarters. Geographically, south regions (contributes 68% to sales) recorded ~13% YoY sales growth while non-south regions continued to grow ~21% YoY during Q2FY18...

We value V-Guard based on a 35x P/E (32x earlier) on Sep-19EPS, and arrive at a TP of Rs 240. We maintain BUY. V-Guard reported strong net revenue growth of 17% at Rs 5.6bn in 2QFY18. Like-to-like revenue growth was at 21%, while our expectation was ~14%. EBITDA and APAT grew by a stellar 30% and 25% respectively.

growth; topline grew due to restocking effect: Revenue rose 17% YoY during the quarter to Rs 560 crores with partial recovery in revenues lost due to GST disruption during the previous quarter. On a like to like basis after adjusting for GST impact, revenue growth stands at 21% YoY. This growth is despite muted cables & wires segment (6% YoY growth) and the switchgears...

V-Guard Industries Ltd (VGIL) is one of leading player in Electrical consumer durables space. Its major product segment includes Stabilizers, cables & wires, UPS, pumps and Electrical appliances. The extent of the impact from de-stocking lead by GST was completely...

We upgrade our rating to BUY with a TP of Rs 207. V-Guards 1QFY18 performance was disappointing, mainly on the margin front. However, factors like healthy underlying growth, recovery witnessed in July, and the recent price hike inspire confidence in the companys future prospects and performance in the coming quarters. We foresee EPS CAGR of 27% over FY17-20.

V-Guard recorded flattish revenue in Q1FY18 due to GST related temporary de-stocking by trade leading to a drop in volume. Consumer durable (CD) segments recorded ~9% YoY dip in sales while revenue of other two segments electronics and electricals increased by ~4% each YoY. Geographically, south regions (contributes 62% to sales) recorded ~2.4% YoY dip in sales while non-south regions continued to grow ~8% YoY during Q1FY18 The rise in raw material coupled with a delay in passing on prices...