VIP Industries Q3 Results Review - Weak Sales, Margins; Maintain 'Hold': IDBI Capital

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..IDBI Capital Report .VIP Industries Ltd.'s Q3 FY24 profitability were below our and street expectations. Net sales increased only by 4% YoY to Rs 5.4 billion (lower by 10.7% of our estimates) due to demand slowdown and international business was impacted due to rising supplies from China.Nevertheless, gross margin recovered by 639 basis points YoY to 55.5% led by higher realisations and decrease in raw material prices. However, Ebitda margin contracted 430 bps YoY to 9.6%. Ebitda fell 28.4% YoY to Rs 523 million. Losing market share to other players remains key concern for VIP Industries.We lower our FY24/FY25 Ebitda by 20%/5% and introduce FY26 forecast in this report. We now value the stock at a price to earnings ratio of 32 times (earlier 38 times FY25) FY26 to derive a target price of Rs 525 (earlier Rs 612) and maintain our 'Hold' rating on the stock..Click on the attachment to read the full report:.Infosys Wins Seven-Year Contract From Ireland’s Musgrave To Automate IT Operations.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 Q3 Results Review - Weak Sales, Margins; Maintain 'Hold': IDBI Capital

VIP’s focus on mass and premium segments has led to strong growth in Carlton and Aristocrat

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