Reduce V-Guard Industries; target of Rs 185: Dolat Capital Market

Dolat Capital Market's research report on V-Guard Industries

V guard saw flat sales at Rs6.2bn, while EBIDTA was down 5% YoY at Rs739mn with EBIDTA margins were down 54bps YoY at 12%. PAT was down 13% at Rs500m. Cash generated from operations was strong at in 1HFY21 at Rs3.2bn vs Rs1.5bn YoY, as working capital has improved significantly with cash conversion days at 53 as compared to 86 days in FY20.

Outlook

We rollover estimates to Sep 22E, valuing it at 34x Sep 22E, which gives a TP of Rs185.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More