Please refer to important disclosures at the end of this report
V-Guard Industries Limited (V-Guard) is an India-based company engaged in
manufacturing, trading and selling of electronic products. V-Guard has been a
dominant player in the southern markets and continues to make significant
investments to increase its distribution network across the country with an aim to
become a pan-India player. The management has plans to launch new model
‘Verano’ in southern market in current season and will be launched pan-India in
FY18 and hence is expected to contribute meaningfully in FY18. Market share
gains in new product categories (switchgear and kitchen appliances) as the
company scales up the portfolio with new campaigns and attractive models. The
management attributed gross margin improvement to various supply chain
initiatives such as consolidation of purchases across divisions, value engineering
activities, realigning of vendors, better demand-supply planning and use o
alternative suppliers coupled with soft raw material prices. V-Guard due to its
consistent dealer expansion in non-south market, Regular new launches and
healthy RoCE of 30% show all positives. Better consumer sentiment particularl
during the festive season, pick-up in construction activity (for the largest cables &
wires segment), cost cutting measures for margin expansion and focus on
reducing working capital would help drive the performance for V-Guard. The
company has reduced its debt and is almost debt free. The company has
reported steady profit of 22.75% CAGR over the last 5 years and healthy RoE o
20%+ in the last 3 years. Hence Buy.
CMP `174
Stock Info
Beta 0.6
Bloomberg Code
Shareholding Pattern (%)
Promoters 65.5
MF / Banks / Indian Fls 15.6
FII / NRIs / OCBs 13.5
Indian Public / Others 9.0
Abs. (%) 3m 1yr 3yr
Sensex (7.0) 2.5 25.4
V-Guard Inds. (0.9) 98.1 265.5
Reuters Code VGUA.BO
BSE Sensex 26,150
Nifty 8,074
Face Value (
Capital Goods
Market Cap (
cr) 5,261
52 Week High / Low 226/79
Avg. Daily Volume 32,282
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
-Guard Industries
Others | Capital Goods
November 21, 2016
V-Guard Industries | Capital Goods
November 21, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Disclosure of Interest Statement V-Guard Industries
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)