The growth trajectory is bright for organised luggage-makers like VIP with multiple demand drivers
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PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Highlights Good show in a seasonally soft quarter Gross margin declines on cost inflation Luggage sector has huge headroom for growth Own manufacturing and preference for hard luggage positive for margin Unorganised players rendered weak post the pandemic Exports could be the next big opportunity A core portfolio stock VIP Industries (VIP, CMP: Rs 710 Market Cap: Rs 10,063 crore) has posted a relatively strong show in Q2FY23 despite the quarter being seasonally weak. Investors ought to take note of the elevated growth trajectory that awaits organised…
