VIP Industries Ltd. share price target

from brand VIP (repositioning done in April) has helped the company tackle slowdown concerns better. Nonetheless, given the current situation, we cut our sales estimates by 8%/13% for FY20E/21E. Despite subdued top-line growth, gross margin expanded 10bps YoY to 50.4% and Ind-AS adjusted EBITDA margin expanded 60bps YoY to 19.2% due to 1) lag effect of price hike taken in March 2) only partial liquidation of high cost inventory sitting on books 3) launch of new products with better margin profile 4) superior product mix (sales of high margin brand VIP has increased) and 5) better...

VIP is a formidable play on luggage market in India .......................................... 5 Investment Argument............................................................................................. 7 Organized luggage industry on cusp of higher growth ....................................... 7 VIP all set to ride the growth phase in luggage industry................................... 10 Creating twin levers of growth .......................................................................... 15 Channel checks indicate brand pull for Skybags is high; Carlton is a sturdy product ............................................................................................................. 16 Competitive landscape of the luggage industry ................................................ 17...

VIP Industries (VIP) reported healthy set of numbers for Q2FY19 with a revenue and PAT growth of 29.9% & 37.8% YoY. Aided by operating leverage (strong volume growth of ~35%) and consumption of low cost inventory, EBITDA grew by 39.6%, while EBITDA margin improved by 88bps YoY to 12.7%. PAT growth stood healthy at 37.7% YoY.

VIP Industries Ltd (VIP) is the largest luggage player in India with ~50%+ market share in the organised market. It has been able to create successful sub brands like Carlton, VIP Bags, Skybags, Aristocrat, Alfa and Caprese. We feel that the company is in very sweet spot where it is gaining market share from unorganised players and can gr..

Multi quarter super performance VIP Industries has reported its strongest quarter in the history of the company. The strength of the performance indicates strong volume growth in a seasonally strong quarter for the company, improvement in realisations with pass through of raw material price...

Multi quarter super performance VIP Industries has reported its strongest quarter in the history of the company. The strength of the performance indicates strong volume growth in a seasonally strong quarter for the company, improvement in realisations with pass through of raw material price...

We recently met the management of VIP Industries to understand its business model and growth prospects. The company is Asia's leading manufacturer/seller of hard and soft luggage, backpacks, suitcases, shoulder bags, office bags and duffel trolleys. VIP has range of leading brands, positioned across entire price range, catering to value, mid and premium price points. The Indian luggage industry is mainly dominated by unorganised players (50-55% market share). The organised industry is oligopolistic in nature with VIP having 55%+ market share, followed by...

VIP Industries (VIP) reported healthy set of numbers for Q3FY18 with a revenue and PAT growth of 12.1% & 68.5% YoY. Aided largely by appreciation in INR and operating leverage, the EBITDA margins improved by 349bps YoY to 12.2%, which was encouraging.

We recently met the management of VIP Clothing (VIP) to understand the business model & outlook, going forward. Incorporated in 1991, VIP (earlier Maxwell Industries) is engaged in marketing & manufacturing innerwear products, mainly catering to men's portfolio (90% of revenues). Over the years, it has created a strong brand legacy with VIP a household name in India. Apart from its flagship brand, the company houses brands under the brands Frenchie and Feelings. VIP has positioned itself as a mass brand with its products priced in the range of | 50-85. To diversify...

VIP has reported second straight strong quarter with significant improvement in revenues, operating margins and earnings. This is on the back of improving luggage penetration in the country and sustained efforts by the company to improve its performance. Sales was reported at Rs 3.09 bn (+8% YoY). EBIDTA margin was reported at 11.3% (+210 bps YoY) with improving volumes and realisations and lower raw material cost. Consequently, PAT was reported at Rs 242 mn (+33% YoY). We estimate the company to be a major beneficiary of increasing penetration of luggage bags and back-packs in the country and...