VIP has now hired an international designer to upgrade portfolio and focus on the premium segment
PRO Only Highlights
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
Highlights
- VIP’s under-performed in the past year due to market share loss and management instability
- Macro remains extremely supportive of luggage demand
- The company guiding to a multi-pronged comeback strategy
- Expects market share gains from H1 FY25
- Meaningful margin gains indicated in H2FY25
- A lot depends on whether the management succeeds in walking the talk
- Patient investor can look at buying the stock given the strong sector tailwinds
Frequent management changes and significant market share loss amid strong macro tailwinds largely explain the huge underperformance