V‐Guard Industries - Sunflame Enterprises Acquisition Will Rev Up Kitchen Growth Engine: Centrum Broking

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. .Centrum Broking Report.We believe V-Guard Industries Ltd.’s decision to acquire 100% stake in Sunflame Enterprises Pvt. Ltd. is a synergistic fit at a reasonable valuation (1.9 times FY22 sales and 20 times FY22 profit after tax). It provides credible prospects to V-Guard of becoming a meaningful player in the domestic kitchen appliances segment, especially the cooking range. The key benefits for V-Guard are-access to Sunflame’s flagship brands ‘Sunflame’ and ‘Superflame’ which have a good brand recall and wider product basket,synergies in the form of geography, product portfolio and sales network,complimentary addition of cooking portfolio as pressure cooker and gas stoves are Rs 30 billion market each, while entire Kitchen appliances market size is ~Rs 180 billion, where V-Guard has negligible presence and Sunflame’s sound financial profile with gross/Ebitda/profit after tax margin of 35-38%/10-13%/9-12% over FY16-21. Our estimates indicate that this deal will be earnings per share accretive for V-Guard by 5% each for FY24E/FY25E..Click on the attachment to read the full report:.V-Guard Industries - Sunflame Enterprises Acquisition Likely To Be DCF-Accretive: ICICI Securities.DISCLAIMERThis 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.

V‐Guard Industries - Sunflame Enterprises Acquisition Will Rev Up Kitchen Growth Engine: Centrum Broking

It provides credible prospects to V-Guard of becoming a meaningful player in domestic kitchen appliances segment.

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