Prabhudas Lilladher has given Buy recommendation for V.I.P. Industries with a target price of Rs. 1020 in its research report issued on Sep 30, 2022

Prabhudas Lilladher’s research report on V.I.P. Industries

Recently, we hosted VIP Industries for a roadshow wherein management highlighted plans to 1) scale brand Caprese by 5x 2) increase exports share to 15% and 3) double the number of EBOs to ~1,000 over next 3 years. The upstream transformational journey continues with plans to further backward integrate into manufacturing of trolleys, wheels and locks (forms ~35-50% of the cost). We believe benefits of owning the value chain (share of in-house manufacturing to be at ~75-80% in FY23E) will start reflecting soon, as input cost pressure has started stabilizing. On the demand front, outlook continues to remain robust and VIP is on track to achieve Rs20bn in top-line with an EBITDA margin of ~18-19% in FY23E. We increase our FY23E/FY24E EPS estimates by 1%/5% and introduce FY25E EPS of Rs25. Amid emergence of new twin levers (handbags and exports) we expect sales/PAT CAGR of 15%/26% over FY23-25E.


Retain BUY with a revised TP of Rs1,020 (45x Sep24 EPS; no change in target multiple but we roll forward).

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