VIP Industries - New Top Team Aiming For A Recovery With A Refreshed Portfolio: Systematix

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.We attended VIP Industries Ltd.’s analyst meet to understand the new Managing Director’s strategy for the company and also get a preview of the upcoming collections across the portfolio. The company is looking to arrest its market share decline and aiming for a significant margin improvement as well. Key highlights -Company expects a double-digit revenue growth from Q4 FY24 onwards and targets to grow at 15-20% compound annual growth rate in the medium-term (2-3% ahead of industry growth); VIP Industries expects Skybags, VIP and Carlton to grow at a higher rate (~ 20-25%) compared to Aristocrat (~10%); With an above industry growth rate company aims to see an improvement in market share from H1 FY25 onwards which was fallen to 37% from about 48% in the past five years;Premium portfolio is expected to tap new higher price points, leading to an operating margin expansion to 15% from H2 FY25 which is expected to reach 20% in the next three years; Other margin improvement drivers will be lower warehousing/freight costs and completion of the BCG project in Q4 FY24 andWith improved brand spending and promotions, company believes it will reduce the current inventory level from ~Rs 9 billion to ~Rs 6 billion in the coming quarter. With strong sectoral tailwinds for the luggage space, a fresh and reenergized management team, a refreshed portfolio and an improved supply chain, the company is looking to regain its past glory, but execution remains the key monitorable especially in light of increased competitive intensity in the space. The stock is currently trading around 26.7 times FY26 consensus earnings..Click on the attachment to read the full report:.VIP Industries - Turnaround In Sight: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

VIP Industries - New Top Team Aiming For A Recovery With A Refreshed Portfolio: Systematix

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