Hold VIP Industries, target price Rs 750: Axis Securities

Axis Securities has hold call on VIP Industries with a target price of Rs 750. The current market price of VIP Industries Ltd. is Rs 702.

VIP Industries Ltd., incorporated in the year 1968, is a Mid Cap company (having a market cap of Rs 9976.35 Crore) operating in Plastics sector.

VIP Industries Ltd. key Products/Revenue Segments include Soft Luggage, Scrap and Export Incentives for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 520.02 Crore, down -12.99 % from last quarter Total Income of Rs 597.66 Crore and up 54.40 % from last year same quarter Total Income of Rs 336.79 Crore. Company reported net profit after tax of Rs 43.40 Crore in latest quarter.

Investment Rationale
The brokerage maintains HOLD recommendation, valuing the stock at 40x FY24E EPS with a revised TP of Rs 750/share, implying an upside of 5% from the CMP.

Promoter/FII Holdings
Promoters held 50.79 per cent stake in the company as of 30-Jun-2022, while FIIs owned 8.84 per cent, DIIs 20.8 per cent.