VIP Industries Ltd. share price target

We cut our EPS estimates by 8.8%/8.7% for FY20E/FY21E given aggravating concerns on growth amid slowdown in discretionary spends. All channels except for e-com have struggled but a diversified mix has helped VIP tackle slowdown concerns better. Despite subdued top-line growth, gross margin expanded 250bps YoY to 53.3% amid improved negotiation with Chinese vendors who are saddled with excess capacity after increase in import duty by the US. The gross margin advantage got nullified at the operating level due to 19% YoY increase in employee expenses due to addition of manpower and...

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.