V-Guard Industries: 4 key reasons why Jefferies expects 19% upside for the stock post Q4 results
V-Guard Industries share price has risen more than 47% in a year and is also trading near 52 week highs seen last week. The Q4 performance remained decent with uptick in sales for Electronics and Electricals segments as well as rising consumer durables and acquired Sunflame sales. ' While Electricals segment contributing more than two-fifth to overall revenues and , comprising of Wires, Pumps, Switchgears, Modular Switches, saw 10.7% growth, Electronics segment comprising– Stabilizers, UPS, Inverters contributing fourth to overall revenues also grew at a fester pace of 18.9% yoy.
The pickup in summer sales of fans helped the Consumer durables segment, contributing fourth to overall revenues grow at a faster 27.9% yoy. Also acquired Sunflame range of products though contributing 5-6% to overall have started growing well as the segment marked a 28% growth Also Read- Indian stock market will break records on June 4: PM Modi on Lok Sabha election results Q4 FY24 revenue increased by 17.9% YoY to Rs. 1,342.77 crore.
Earnings Before Interest Tax Depreciation and amortisation (Ebitda) at Rs. 127.85 crore in Q4 FY24 grew 31.5% year on year, as compared to Rs. 97.21 crore in Q4 FY23.
Q4 FY24 net profit increased 44.5% YoY to Rs. 76.17 crore. Also Read- JSW Steel: Should you Buy, Sell, or Hold stock post Q4 results impacted by higher coal costs Jefferies expects V-Guard earnings to grow at compound annual growth rate of 30% over FY24-27 aided by Sunflame synergies, margin-accretive categories and higher in-house manufacturing, with a 130bps increase in operating margins to 10% by FY27.
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