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 264.6.
V-Guard Industries, incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 11439.52 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
V-Guard is likely to have a debt burden on its books in the near term but we believe the same would start easing from FY25 onwards supported by its strong operating cash flow and no major capex over the next two years.

Promoter/FII Holdings
Promoters held 55.86 per cent stake in the company as of September ended quarter, while FIIs owned 0 per cent DIIs 18.06 per cent.