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V-Guard Industries Ltd Stock Analysis

Mid Cap
Evaluated by 3663 users | BSE: 532953 | NSE: VGUARD |
Electric Equipment
V-Guard Industries,started in 1977, manufactures a range of products namely voltage stabilizers, pumps, electric water heaters, solar water heaters, cables, UPS, ceiling fans, etc.This Kerala-based company was a vision of Kochouseph Chittilappilly that was started with a seed capital of Rs1...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 18.08%20.07%20.63%20.03%19.63%25.76%26.16%19.37%20.22%19.99%
Value Creation Index 0.390.540.590.540.510.981.010.490.560.54
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7279651,3601,5181,7461,8622,0862,3122,5662,482
Y-o-Y Gr. Rt.-32.8%41%11.6%15.1%6.7%12%10.8%11%-3.3%
Adjusted EPS (Rs.) 0.961.231.511.691.72.693.423.143.924.41
Y-o-Y Gr. Rt.-28.1%22.8%11.9%0.6%58.2%27.1%-8.2%24.8%12.5%
Book Value per Share (Rs.) 4.125.046.257.568.9411.0914.4516.8720.0822.53
Adjusted Net Profit 40.351.46370.771.2113145134167189
Net Op. Cash Flow (Rs. Cr.) -34.483.710.511188.713113054.1153139
Debt to Cash Flow from Ops -4.061.315.690.980.760.080.040.040.070.07
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
V-Guard Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 14.6%7.3%6%-3.3%
Adjusted EPS 18.5%21%8.8%12.5%
Book Value per Share 20.820.31612.2
Share Price 34.7% 23.6% -6.5% -16.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 25.726.8826.6924.420.4526.6626.2719.3120.2619.93
Operating Profit Margin (%) 10.099.798.098.137.669.6710.088.138.6510.41
Net Profit Margin (%) 5.545.334.634.664.086.076.965.796.527.6
Debt to Equity 0.810.520.630.340.180.020.0100.010.01
Working Capital Days 115115109119110106102119129140
Cash Conversion Cycle 89868289816857575866
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 62.64%
Institutions 25.65%
Non-Institutions 11.71%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of V-Guard Industries Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that V-Guard Industries Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of V-Guard Industries Ltd's performance infers:

V-Guard Industries Ltd earnings have grown by 21%, whereas share price has appreciated 23.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of V-Guard Industries Ltd share prices over the last 10 years. Here is what we found out:

V-Guard Industries Ltd share price has appreciated 31.1% annually over the past ten years.

V-Guard Industries,started in 1977, manufactures a range of products namely voltage stabilizers, pumps, electric water heaters, solar water heaters, cables, UPS, ceiling fans, etc.

This Kerala-based company was a vision of Kochouseph Chittilappilly that was started with a seed capital of Rs1 lakh. He set up the company by establishing a SSI unit manufacturing and selling stabilizers, with just two workers. V-Guard has emerged from being a single product company to owning a portfolio

V-Guard Industries,started in 1977, manufactures a range of products namely voltage stabilizers, pumps, electric water heaters, solar water heaters, cables, UPS, ceiling fans, etc.

This Kerala-based company was a vision of Kochouseph Chittilappilly that was started with a seed capital of Rs1 lakh. He set up the company by establishing a SSI unit manufacturing and selling stabilizers, with just two workers. V-Guard has emerged from being a single product company to owning a portfolio of household products.

The V-Guard Group has emerged as one of the most trusted brand in India.

The company directly employs 700 people and indirectly over 5,500 people. It has a network of 83 distributors, 75 service centers and 7000 retailers across the country making it a pan-India company. It has 40 million satisfied customers.

V-Guard has received ISO 9001 certification for its electrical wiring cables unit located at Coimbatore in Tamil Nadu.

The company also conducts research and development initiatives for electronic products, electric geysers, electro-mechanical products, electrical wires and solar water heaters. The R&D centre is located at Cochin.

V-Guard owns two wind energy converters type E30 at Erode in Tamil Nadu with a capacity of 230 KW. Currently it produces 13 lakh units per annum, which is transferred to the state electricity grid.

In the year 2000, the company set up Veega Land -- one of the most attractive amusement parks in the country with a spectacular range of rides and entertainment located in Kerala, thus stepping into the leisure industry. The company set up its second and India’s biggest amusement park -- ‘Wonder La’- in Bangalore.

Products

Stabilizer and UPS- V-Guard is the largest selling brand of electronic voltage stabilizers across India. It manufactures stabilizer for ACs, TV, digital equipment and refrigerators.

Cables- V-Guard manufactures PVC wiring cables, XLPE Insulated power Cables and PVC Insulated Power Cables.

V-Guard has extended their range of products to include Battery, Electric Water Heaters, Solar Water Heaters, Domestic Pumps, Agricultural Pumps, Industrial Motors, Switchgears, Distribution Boards, Wiring Cables, Industrial Cables, Induction Cook-top & Fans.

Awards

The company has received “Industry Excellence Award for Medium Scale Industries” awarded by The Institution of Engineering (India), Cochin.

It was acknowledged as Kerala’s No.1 Consumer Durable products category from Dhanam Magazine.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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