Buy V-Guard Industries, target price Rs 310: ICICI Direct

ICICI Direct has buy call on V-Guard Industries with a target price of Rs 310. The current market price of V-Guard Industries is Rs 271.55 .

V-Guard Industries, incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 11705.01 Crore) operating in Consumer Durables sector.

V-Guard Industries 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 989.43 Crore, down -3.32 % from last quarter Total Income of Rs 1023.41 Crore and up 8.73 % from last year same quarter Total Income of Rs 909.97 Crore. Company has reported net profit after tax of Rs 43.66 Crore in latest quarter.

The company’s top management includes Mr.Kochouseph Chittilappilly, Mr.Cherian N Punnoose, Mr.Mithun K Chittilappilly, Mr.V Ramachandran, Prof.Biju Varkkey, Mr.George Muthoot Jacob, Mr.Ullas K Kamath, Mr.C J George, Ms.Radha Unni. Company has S R Batliboi & Associates LLP as its auditors. As on 30-09-2022, the company has a total of 43 Crore shares outstanding.

Investment Rationale
Sunflame acquisition will provide significant synergies to V-Guard in areas like geography, product portfolio and channel. Sunflame is a dominant play in the non-south regions (with 80% revenue contribution). The brokerage has rolled roll over its valuation on FY25E and revised its rating on V-Guard from Hold to Buy.

Promoter/FII Holdings
Promoters held 55.86 per cent stake in the company as of 30-Sep-2022, while FIIs owned 12.39 per cent, DIIs 18.06 per cent.