VIP Industries Shares Turn Volatile; Erases Opening Losses To Gain 2%

Shares of VIP Industries Ltd. erased all opening losses to trade 1.97% higher at Rs 453 apiece through early midday trade on Wednesday.

During opening trade, the stock fell 2.53% to Rs 433 apiece, the lowest since June 4. This compares to a 1.05% advance in the NSE Nifty 50 Index.

The stock has fallen 31.54% in the last 12 months. Total traded volume so far in the day stood at 1.74 times its 30-day average. The relative strength index was at 42.63.

Out of 14 analysts tracking the company, seven maintain a 'buy' rating, five recommend a 'hold', and two suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 24.5%.

The company's consolidated net profit tumbled 93.07% to Rs 4 crore in the quarter ended June 2024, according to an exchange filing. During the same period, revenue from operations rose 0.4% to Rs. 638.8 crore.

The company also stated that eligible employees have exercised 37,500 stock appreciation rights in accordance with the company's Employees Stack Appreciation Rights Plan 2018 (ESARP 2018).

As a result, the company issued 20,719 fully paid-up equity shares of Rs 2 each to eligible employees during the current quarter ended June 30, 2024, as approved by the company's board. Accordingly, the company has transferred Rs 80 lakhs to the Securities Premium during the quarter ended June 30, 2024.