Sharekhan has given Buy recommendation for V-Guard Industries with a target price of Rs. 311 in its research report issued on May 27, 2021
Sharekhan’s research report on V-Guard Industries
Healthy performance in Q4FY21 where revenues improved 58% y-o-y lead by broad-based growth across product categories along with OPM expansion on cost saving measures leading to higher net profit. Management expects to get back on to the growth path with a rebound in business environment and highlighted that demand expected to resume from Q2FY2022E and would like to grow at 15% per annum with a sustainable margin of 10-10.5%. The company’s strong balance sheet, cash flow and reputed brand along with strong business fundamentals provide comfort in the present environment.
We retain Buy on V-Guard Industries Limited (V-Guard) with an unchanged PT of Rs. 311, considering its improving business operations.