V-Guard Industries Ltd - Stock Valuation and Financial Performance

BSE: 532953 | NSE: VGUARD | Electric Equipment | Small Cap

V-Guard Inds. Share Price

331.45 0.80 0.24%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on V-Guard Inds.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

V-Guard Industries stock performance -

mw4me loader
P/E Ratio (SA):
72.69
Market Cap:
14,397.7 Cr.
52-wk low:
238.2
52-wk high:
352

Is V-Guard Industries Ltd an attractive stock to invest in?

1. Is V-Guard Industries Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that V-Guard Industries Ltd is a good quality company.

2. Is V-Guard Industries Ltd undervalued or overvalued?

The key valuation ratios of V-Guard Industries Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is V-Guard Industries Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of V-Guard Industries Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of V-Guard Inds.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
V-Guard Industries Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 20%19.6%25.8%26.2%19.4%20.2%20%18.4%17.6%11.1%-
Value Creation
Index
0.40.40.80.90.40.50.50.40.3-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,5181,7461,8622,0862,3122,5662,4822,6993,4774,0504,378
Sales YoY Gr.-15.1%6.7%12%10.8%11%-3.3%8.7%28.8%16.5%-
Adj EPS 1.71.72.73.43.13.94.44.75.34.14.6
YoY Gr.-0.6%58.2%27.1%-8.2%24.8%12.5%5.9%12.4%-21.1%-
BVPS (₹) 7.68.911.114.516.920.122.527.431.635.838.9
Adj Net
Profit
70.771.2113145134167189201226179198
Cash Flow from Ops. 11188.713113054.1153139222-32.9416-
Debt/CF from Ops. 10.80.1000.10.10.1-0.31-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11.5%11.9%17.7%16.5%
Adj EPS 10.5%5.7%-2.1%-21.1%
BVPS18.8%16.2%16.6%13%
Share Price 25.9% 8.4% 12.9% 34.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
24.420.526.726.319.320.319.918.217.41212.2
Op. Profit
Mgn %
8.17.79.710.18.18.710.411.59.67.47.8
Net Profit
Mgn %
4.74.16.175.86.57.67.46.54.44.5
Debt to
Equity
0.30.200000000.3-
Working Cap
Days
11911010610211912013113413312255
Cash Conv.
Cycle
8981685757515856646324

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 17.73%

Return on Equity has declined versus last 3 years average to 12.20%

Net Profit has been subdued in last 3 years -2.08%

Sales growth is not so good in last 4 quarters at 8.99%

Latest Financials - V-Guard Industries Ltd.

Standalone Consolidated
TTM EPS (₹) 4.6 5.4
TTM Sales (₹ Cr.) 4,378 4,654
BVPS (₹.) 38.9 40.1
Reserves (₹ Cr.) 1,648 1,697
P/BV 8.51 8.27
PE 72.69 61.49
From the Market
52 Week Low / High (₹) 238.15 / 352.00
All Time Low / High (₹) 2.61 / 352.00
Market Cap (₹ Cr.) 14,398
Equity (₹ Cr.) 43.4
Face Value (₹) 1
Industry PE 84.1

Management X-Ray of V-Guard Inds.:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of V-Guard Inds.

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,5181,7461,8622,0862,3122,5662,4822,6993,4774,050
Operating Expenses 1,3951,6131,6841,8772,1252,3472,2292,3933,1433,749
Manufacturing Costs314849668092100111170190
Material Costs1,1311,2901,3121,4781,6141,7991,6581,8492,4142,880
Employee Cost 8694111144170202207225267295
Other Costs 147180212189261254264209291384
Operating Profit 123133178209187219253306334301
Operating Profit Margin (%) 8.1%7.6%9.6%10.0%8.1%8.5%10.2%11.4%9.6%7.4%
Other Income 54713111824211115
Interest 2121922146816
Depreciation 12151516192228374858
Exceptional Items 0000000000
Profit Before Tax 94101161204177215245285290241
Tax 24314959444960866362
Profit After Tax 7071112145133166185199227179
PAT Margin (%) 4.6%4.1%6.0%6.9%5.8%6.4%7.5%7.4%6.5%4.4%
Adjusted EPS (₹)1.71.72.73.43.13.94.34.65.34.2
Dividend Payout Ratio (%)19%19%19%21%22%21%21%26%25%31%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 3163754676147188579651,1781,3661,545
Share Capital 30303042434343434343
Reserves 2863454375716768159221,1351,3221,502
Minority Interest0000000000
Debt995872010101010420
Long Term Debt31216200000273
Short Term Debt683720010101010147
Trade Payables175193151219329353301473447433
Others Liabilities 889891100108136162196251310
Total Liabilities 6797257179341,1551,3561,4381,8572,0742,708

Fixed Assets

Gross Block228241253185236264344466567666
Accumulated Depreciation62789216355177112167220
Net Fixed Assets166162161168201214267354400446
CWIP 310107867201616
Investments 00198984924542102851
Inventories253261205274311371476629850689
Trade Receivables212244279312444454322385479532
Cash Equivalents 328155851122815424
Others Assets42554565103133149147172149
Total Assets 6797257179341,1551,3561,4381,8572,0742,708

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 1118913113054153139222-33416
PBT 94101161204177215245285290241
Adjustment 38393233362921477470
Changes in Working Capital -2-21-12-42-118-38-50-38-310150
Tax Paid -19-31-50-66-41-52-76-72-87-46
Cash Flow From Investing Activity -28-17-32-106-27-50-11041-133-774
Capex -32-12-14-42-41-51-84-64-77-51
Net Investments 30-19-6914-8-418800
Others 2-5260101418-56-723
Cash Flow From Financing Activity -93-72-94-16-37-24-90-6-61328
Net Proceeds from Shares 0439352552
Net Proceeds from Borrowing 0-9-22-3-3-2000273
Interest Paid -24-20-7-1-10-3-5-7-16
Dividend Paid -10-13-27-8-30-30-880-52-56
Others -59-34-41-14-64-2-5-7126
Net Cash Flow -10-158-1080-61257-227-30
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)24.3120.4726.5226.7719.9821.0120.3218.5717.8312.32
ROCE (%)27.0427.9936.6736.7225.6725.9526.0426.1322.6315.05
Asset Turnover Ratio2.312.512.62.562.222.21.91.741.861.8
PAT to CFO Conversion(x)1.591.251.170.90.410.920.751.12-0.152.32
Working Capital Days
Receivable Days49475151595953454343
Inventory Days59534541464558707465
Payable Days23243445626972767056

V-Guard Industries Ltd Stock News

V-Guard Industries Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of V-Guard Inds. on 28-Mar-2024 16:01 is ₹331.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of V-Guard Inds. stood at ₹14,397.7.
The latest P/E ratio of V-Guard Inds. as of 28-Mar-2024 16:01 is 72.69.
The latest P/B ratio of V-Guard Inds. as of 28-Mar-2024 16:01 is 8.51.
The 52-week high of V-Guard Inds. is ₹352.0 and the 52-week low is ₹238.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of V-Guard Inds. is ₹4,378 ( Cr.) .

About V-Guard Industries Ltd

V-Guard Industries Ltd, the origin dates back to 1977, when Mr. Kochouseph Chittilappilly with a burning passion to make a difference set out to build a robust brand in the Indian electric and electronic goods panorama. V-Guard offers a range of products from Voltage Stabilizer to Digital UPS, Inverter and Inverter Batteries, Electric Water Heaters, Solar Water Heaters, Domestic Pumps, Agricultural Pumps, Industrial Motors, Domestic Switch Gears, Distribution Boards, Wiring Cables, Industrial Cables, Induction Cooktops, Mixer Grinders, Fans, Rice Cooker, Gas Stoves, Solar Power Systems & Air Coolers.

Business area of the company

V-Guard Industries is engaged in manufacturing, trading and selling of electronic products. The Company's segments include Electronics, Electrical/Electro Mechanical and Others. V-Guard's Electronics segment includes products, such as voltage stabilizers, uninterruptible power supply (UPS) and digital UPS. The Company's Electrical/Electro Mechanical segment includes products, such as PVC Cables, Pumps and Motors, Electric Water Heaters, Fans, Switchgears, Induction Cooktops and Mixer Grinder. The Company's others segment includes products, such as solar water heater and solar inverter.

Products of the company

  • Voltage Stabilizers
  • Inverter, DUPS, Solar Power Systems & Inverter Batteries
  • Electric, Solar & Heat Pump Water Heaters
  • Wires & Cables
  • Fans
  • Kitchen Appliances
  • Pumps
  • Domestic Switch Gears

Awards

Financial Year 2015-16

  • V-Guard Voltage Stabilizer has been conferred the prestigious 'Superbrand' status. Selected after a five month long evaluation process involving the opinion of more than 17,000 customers and an elite panel of marketing professionals. V-Guard Stabilizer was ranked amongst the top brands across all categories.
  • Kashipur factory was felicitated as the Bronze Winner in National Awards for Manufacturing Competitiveness (NAMC) instituted by International Research Institute for Manufacturing (IRIM).

Financial Year 2016-17

  • Superbrand Award for Stabilizers, 2015-16.
  • Golden Leaf Award for Architectural Excellence, State level (Corporate office) by Indian Institute of Architects, 2011.
  • Rotary Binani Zinc CSR Award for Corporate Social Responsibility by Rotary Club of Metropolis, NIPM Kerala Chapter, 2011.
  • Commendation Certificate from Energy Management Centre, Kerala for ‘Star-labelled equipment’, 2010.
  • Social Safety Award by National Safety Council, 2010.
  • Excellence in Business by Times of India/The Economic Times, 2009.
  • Industry Excellence Award 1998-99.

Financial Year 2017-18

  • Solar Water Heater, Perundurai facility of Mechanical & Electrical Division Bags Gold Award in the 3rd Maintenance Personnel Competition’2018, Organised by ABK – AOTS DOSOKAI Tamilnadu Centre.
  • V-Guard Bags NIPM CSR Award.
  • Wires & Cables Division Bags Par Excellence & Excellence awards in the 31st National Convention by QCFI.
  • Wires & Cables Division Bags Par Excellence Award in National Conclave by QCFI.

Financial Year 2018-19

  • Perundurai Solar Water Heater Plant bagged 2nd Runner up position in 2nd CII National Competition on SPC – Towards Zero Defect.
  • Perundurai Solar Water Heater Plant bagged ‘Par Excellence Award’ in 32nd National Convention on Quality Concepts (NCQC-2018) at ABV - Institute of Information Technology & Management, Gwalior.
  • Chavadi WCD Unit was conferred with ‘First 5S Certified Cable Plant’ from JUSE 5S Certification.
  • Chavadi & Kashipur WCD Unit bagged ‘Par Excellence’ in highest category Award at National Level QC Contest Quality Circle Forum of India Awards. The plant also got qualified for ICQCC 2019 at Japan.

Financial Year 2019-20

  • V-Guard’s Brand Identity & AC Stabilizer TV campaign was awarded at the 13th Edition of Pepper Creative Awards 2019 which is South India’s biggest & one of India’s largest advertising awards festival. Brand’s work was chosen from over 800 entries vying for the honours in multiple categories.
  • V-Guard’s AC Stabilizer campaign was adjudged winner of ‘best advertising campaign’ in consumer durable category by International Advertising Association (IAA) which is an industry recognized body of marketing communications from advertisers to media companies as well as advertising and interactive agencies, direct marketing firms and even individual practitioners. V-Guard’s campaign was awarded from over 7,000 pieces of work evaluated by an elite panel of renowned marketers.

History and milestones

  • 1977: With a seed capital of Rs.1 Lakh, two employees and a heart full of dreams, Mr. Kochouseph Chittilappilly laid the foundation of V-Guard. The unit was set up in a garage space and concentrated on the manufacturing of Stabilizers which were much in demand during those times.
  • 1980: Stretching the scope of business a little further, the company added a special quality Stabilizers for Air Conditioners to its product portfolio to cater to an emerging market segment that is rich in potential.
  • 1992: Having established credentials in the stabilizer business, V-Guard diversified it's range of products and accommodated high-quality Pumps into it. It was an altogether different category and V-Guard entered its market successfully.
  • 1996: Moving on, V-Guard came up with efficient water heating solutions which were quite in demand in the market around this time. The solution was an extensive range of Water Heaters, which soon won acclaim for their quicker heating capability and durability, augmenting the trust of V-Guard as a reliable brand.
  • 1997: A steadily growing brand, V-Guard added Wiring Cables to its portfolio. Very soon, the Company won recognition as the provider of a specialized range of house wires.
  • 1999: With the expectations of its loyal customer base growing and the demand for its products rising, it found it necessary to increase the manufacturing capacity. Thus, a cable manufacturing unit was set up in Coimbatore; a step that also opened up a market of new opportunities.
  • 2002: On a mission to provide its customers with energy efficient solutions, V-Guard introduced its range of Solar Water Heaters to the market. Not only did they provide warmth during chilly winters, but also proved to be a viable option in the context of mounting electricity charges.
  • 2006: Continuing the diversification plans and expandingthe portfolio, V-Guard added yet another asset to the kit “an exquisite array of Electric Fans.
  • 2007: Understanding that there was a huge potential for V-Guard products outside its home state, V-Guard set seed in its endeavor to become a pan India brand. It opened new branches and strengthened its non-south market operations to achieve that goal.
  • 2008: A corporate with a wide range of commercial concerns, V-Guard decided to go public with the Initial Public Offering (IPO) of Shares. The Company's name was now listed in the BSE and NSE, an accomplishment that paved way to bigger successes.
  • 2009: With a strong nation-wide presence of its products, and to cater to the growing demand across the country V-Guard opened up more manufacturing units in different locations in the Country. Thus, an L.T. Cable factory at Coimbatore, a Wires & Cables factory at Kashipur and Water Heaters and Fans factory at Kala Amb were all launched. Also, DUPS, Inverters were added to V-Guard's product portfolio.
  • 2010: The growth was continuing and so was the introduction of new products. The latest in the portfolio in 2010 was a smart array of Domestic Switch Gears. Thus, the company switched on a new era in the segment ably supported by the trust of brand V-Guard.
  • 2012: An eventful year by all means, the Directorial Board of V-Guard appointed Mr. Kochouseph Thomas Chittilappilly as the Executive Vice Chairman of the Company and Mr. Mithun K. Chittilappilly as the Managing Director. This year also saw the total turnover hitting the Rs 1000 Crores mark. Also, a premium range of Induction Cook Tops were added to the V-Guard portfolio of high-utility products.
  • 2013: Establishing its supremacy in the solar water heaters segment with a punch, V-Guard commissioned India's largest manufacturing plant for solar water heaters at Perundurai, Tamil Nadu. This state-of-the-art Unit is India's largest integrated manufacturing facility for polymer tanks and stainless steel tanks for Solar Water Heaters. Also added to the product kit were a special range of Mixer Grinders.
  • 2014: Innovative strategies, efficient work-flow, effective marketing, strict cost control measures, excellent administration the results of these and many more factors reflected in the phenomenal growth of the Company, with the Financial Year 2014 witnessing the total revenue hitting the Rs. 1500 crore mark.
  • 2015-2016: the company launched its new ceiling fan - 4 Air. Its dual tone vibrant colour combination gives the ceiling a premium look and blends perfectly with the interiors. The V-Guard 4 Air fan is a unique fan armed with four blades providing superior performance on air delivery and effective cooling for larger rooms. It is complemented with an exotic body ring giving it a classy finish.
  • 2017-18: Introduced Air coolers in the markets of Delhi & Hyderabad. The company has also Launched Modular switches in Kerala and Introduced LED Fans. Meanwhile, the company Expanded Kitchen Appliance category with launch of Rice cookers in Andhra Pradesh and Telangana.
  • 2018-19: Adopted the Manufacturing Excellence Model to bring in increased quality assurance and efficiencies in its production processes. The company has also launched modular switches in select markets across India.
  • 2019-20: Launched exciting new products across categories to further drive V-Guard’s commitment to bring forth meaningful innovations that enrich the lives of its consumers. Also, formulated a three-pronged strategy at the organisational level to combat the unprecedented pandemic challenge.
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