Buy V-Guard Industries; target of Rs 211: Sharekhan

Sharekhan's research repor on V-Guard Industries

We have introduced FY2023E earnings. Market demand at 80-85% of normal in August-September, while factories are currently operating at 70-80%. The company is set to increase inventory to cater to demand surge in the festive season. Launch of e-commerce exclusive products. Expect scale up in appliance revenue with key role played by the e-commerce segment. Targeting acquisitions with appetite for Rs. 500 crore-600 crore acquisition size to build scale in allied products. We expect organised players such as itself to benefit in the current tough environment.

Outlook

We retain Buy on V-Guard Industries Limited (V-Guard) with a revised PT of Rs. 211, considering its reasonable valuations and improving business operations.

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