VIP’s own-manufacturing strategy is positive for margins and the stock valuation is at a discount to the consumer universe
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 Decent quarterly performance with good top-line growth Gross margin expands, headroom for improvement Operating margin impacted by one-off provision and higher advertising expense Early signs of improvement in the premium category Luggage sector has huge headroom for growth with multiple tailwinds Own manufacturing and preference for hard luggage positive for margin Market share gains from unorganised players continue A high visibility consumption stock should form a part of core portfolio VIP Industries (VIP, CMP: Rs 724 Market Cap: Rs 10,251 crore) has posted a decent quarter in…
