Hold VIP Industries, target price Rs 275: Edelweiss
VIP Industries Ltd., incorporated in the year 1968, is a Mid Cap company (having a market cap of Rs 4378.72 Crore) operating in Plastics sector.
By ETMarkets.com | Updated:
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Promoters held 53.5 per cent stake in the company as of June 30, 2020, while FIIs held 4.1 per cent, DIIs 13.4 per cent and public and others 29 per cent.
Edelweiss has given a hold rating to VIP Industries with a target price of Rs 275. The share price moved down by 2.39 per cent from its previous close of Rs 307.75. The stock’s last traded price is Rs 300.40.
VIP Industries Ltd., incorporated in the year 1968, is a Mid Cap company (having a market cap of Rs 4378.72 Crore) operating in Plastics sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 102.75 Crore, up 154.77 % from last quarter Sales of Rs 40.33 Crore and down -75.08 % from last year same quarter Sales of Rs 412.27 Crore Company reported net profit after tax of Rs -35.39 Crore in latest quarter.
Investment Rationale With gradual sales recovery, robust sourcing capability from low-cost Bangladesh and recurring nature of fixed overheads reduction, it believes operating leverage will be high once recovery sets in. Hence, it maintains ‘HOLD’ with revised TP of INR275 (INR248 earlier), valuing it at 34x FY22E EPS.
Promoter/FII Holdings Promoters held 53.5 per cent stake in the company as of June 30, 2020, while FIIs held 4.1 per cent, DIIs 13.4 per cent and public and others 29 per cent.
