BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Takeaways from V-Guard Industries Ltd.'s Q2 FY24:
gross margin is reverting to pre-Covid levels (+ 449 basis points YoY in Q2 FY24),
Business to business segments have maintained healthy growth whereas business to consumer segments (consumer durables) continued to report dismal performance, and
there is improvement in working capital.
We expect a recovery in FY25 due to likely revival in consumer demand, stability in input prices and exhaustion of high cost inventory. We expect profitability in consumer durables to revive in H1 FY25.
The distribution, sourcing and media buying synergy benefits post Sunflame Enterprises Pvt. Ltd. acquisition are likely to be realised in H2 FY24 and FY25.
We remain constructive on V-Guard and maintain 'Add' rating with discounted cash flow based unchanged target price of Rs 335 (implied price/earning of 46 times FY25E).
Risks
Sharp increase in input prices and competitive pressures
major increase in input prices and/or increase in competitive pressures will likely result in downside to our estimates.
Delays in launch of new plants/products
Any delays in launch of new products and/or plants may result in lower earnings than estimated.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
