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- V-Guard Industries has demonstrated robust growth across its various segments, with a notable 47% increase in share price over the past year.
- The company’s Q4 results show a strong performance, particularly in the Electronics and Electricals segments, alongside the integration of acquired Sunflame sales.
- “With a strong performance, analysts at Jefferies expect more than 19% upside to the stock,” highlighting the potential for continued growth.
V-Guard Industries’ recent financial results and strategic acquisitions set the stage for sustained growth, making it a noteworthy stock for investors.
Strong growth in all segments
The Electricals segment, which includes products like Wires, Pumps, Switchgears, and Modular Switches, saw a growth of 10.7%. Meanwhile, the Electronics segment, which comprises Stabilizers, UPS, and Inverters, grew by 18.9% year-over-year. The Consumer Durables segment, boosted by the summer sales of fans, grew by an impressive 27.9% year-over-year.
Decent Q4 results and growth
For Q4 FY24, V-Guard reported a revenue increase of 17.9% year-over-year to Rs. 1,342.77 crore. EBITDA for the quarter was Rs. 127.85 crore, up 31.5% from the previous year, and net profit surged by 44.5% to Rs. 76.17 crore.
Analysts project significant upside
Analysts at Jefferies have highlighted several key reasons for their positive outlook on V-Guard:
- The Consumer Durables segment continues to drive growth, with significant sales increases both quarterly and annually.
- The integration of Sunflame is expected to strengthen its presence in e-commerce and southern markets, with anticipated manufacturing synergies boosting future sales.
- Improvements in margin are seen as sustainable, with increased internal manufacturing and operational efficiencies.
- Geographical diversification strategies are paying off, with non-south markets growing faster than southern markets.
Conclusion
V-Guard’s strategic initiatives and strong quarterly performance underline its potential for future growth. With analysts forecasting a bright outlook, the company remains a compelling option for investors looking at sustainable gains.
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