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VIP Industries Ltd. Stock Analysis

Small Cap
Evaluated by 4104 users | BSE: 507880 | NSE: VIPIND |
Household & Personal Products
VIP Industries (VIPIL), incorporated in 1968 ,is engaged in the business of manufacturing of luggage bags. The company's manufacturing facilities are located at Nashik, Nagpur, Jalgaon, Satara, Sinnar in Maharashtra and Haridwar in Uttaranchal. The company is also engaged in manufacturing of...
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.
VIP 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 34.24%23.57%12.21%17.09%14.4%20.2%22.54%28.62%26.31%25.56%
Value Creation Index 1.180.50-0.220.09-0.080.290.440.830.680.63
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7588608389731,0481,2161,2521,4101,7851,718
Y-o-Y Gr. Rt.-13.4%-2.6%16.1%7.7%16.1%2.9%12.6%26.6%-3.7%
Adjusted EPS (Rs.) 6.264.852.333.443.114.775.948.9610.5710.6
Y-o-Y Gr. Rt.--22.5%-52%47.6%-9.6%53.4%24.5%50.8%18%0.3%
Book Value per Share (Rs.) 14.2417.1718.2320.3121.6424.0128.8734.6141.0542.97
Adjusted Net Profit 88.568.53348.643.967.584127149150
Net Op. Cash Flow (Rs. Cr.) 12.884.173.750.313.653.412785.2-55.9292
Debt to Cash Flow from Ops 8.3310.540.322.280.2700-1.540.11
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.
VIP Industries Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.5%10.4%11.1%-3.7%
Adjusted EPS 6%27.8%21.3%0.3%
Book Value per Share 13.114.714.24.7
Share Price 5.2% 22.6% -1.8% -42.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 50.8730.8613.1817.8314.8220.9122.4828.2427.9225.13
Operating Profit Margin (%) 16.1314.178.658.747.589.1910.5813.8613.0217.44
Net Profit Margin (%) 11.667.963.944.994.195.556.718.998.378.71
Debt to Equity 0.530.350.160.060.10.04000.150.05
Working Capital Days 149158168137132136135136155186
Cash Conversion Cycle 74807559616763587478
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 53.46%
Institutions 18.12%
Non-Institutions 28.42%
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 VIP Industries Ltd. and arrived at the following conclusion:

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

The 5-year analysis of VIP Industries Ltd.'s performance infers:

VIP Industries Ltd. earnings have grown by 27.8%, whereas share price has appreciated 22.6% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

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

VIP Industries Ltd. share price has appreciated 8.6% annually over the past ten years.

VIP Industries (VIPIL), incorporated in 1968 ,is engaged in the business of manufacturing of luggage bags. The company's manufacturing facilities are located at Nashik, Nagpur, Jalgaon, Satara, Sinnar in Maharashtra and Haridwar in Uttaranchal. The company is also engaged in manufacturing of moulded furniture.

The company is engaged in manufacturing of moulded luggage (from high-density polyethylene), soft luggage (from nylon, polyester, jupolene, printed polyester) and ABS luggage (from

VIP Industries (VIPIL), incorporated in 1968 ,is engaged in the business of manufacturing of luggage bags. The company's manufacturing facilities are located at Nashik, Nagpur, Jalgaon, Satara, Sinnar in Maharashtra and Haridwar in Uttaranchal. The company is also engaged in manufacturing of moulded furniture.

The company is engaged in manufacturing of moulded luggage (from high-density polyethylene), soft luggage (from nylon, polyester, jupolene, printed polyester) and ABS luggage (from acrylonitrile butadiene styrene plastic) including briefcases, suitcases, handbags, carry bags and vanity cases.

VIP has been promoted by the $200 million DG Piramal Group. The company has a design team, which is constantly focusing on innovating, constantly innovates, exploring new technologies and materials to create luggage of high quality.

VIP owns subsidiaries namely Carlton Travel Goods and Carlton and Blow Plast Retail.

Globally. the company has a presence in Indonesia, Hong Kong, Russia, Canada, Iceland, Ghana, Malta, Spain, France, Belgium, Ireland, Sweden, Poland, Finland, Greece and Lebanon among others.

Manufacturing facilities

The companys' manufacturing facilities are equipped with latest technology and the products go through various tests such as jolt test for handle and lug fixing, wheel test-belt for wheel assembly, tumble test, pendulum test and pressure test.

Today, the company own brands like Delsey, Alfa, Footloose, Carlton, Aristocrat and Skybags.

Milestones

1968- VIP Industries was incorporated.

1971- The company’s manufacturing facility located at Nasik was commissioned

1982- Manufacturing facility located at Jalgoan was commissioned

1983- The company introduced NR mechanism under which the luggage will not open in upside down position. 

1986- The company set up a manufacturing facility in Nagpur. The same year the company introduce padded handle for better grip

1989- The company introduced advance locking system -- dual action lock. VIP also launched its brand “Alfa”

1993- VIP set up a manufacturing facility located at Sinnar.

1995- The company introduced Heat Sealing Method wherein it manufactured moulded luggage (No Metal Frame) having inside fabric lining.Company also introduced Dual Material Dimpled Bumper that allows rough usage of luggage.

1996- It introduced the corner lock feature

1998- Vertical Access Feature was launched allows user to open the luggage in order to access documents in vertical condition.

2000- It launched the brand “Delsey”. The company launched Convipack-a soft luggage inside a hard luggage. The same year the company introduced cable lock 

2001- The company introduced center locking mechanism -- a single locking actions locks all the multiple latches. Rolling Scratch Guard was launched in order to avoid scratch marks.

2002- The company introduced luggage with Paper frame and handle locking mechanism.

2003- VIP launched FM radio in luggage. 

2004- The company acquired Carlton MEA, Hong Kong. The company has presence in 65 countries with a design studio located in London and regional offices in Dubai and Hong Kong.

2010 - VIP Introduces "Superlite" - lightweight bags that enable you travel easier  and pack more without the fear of paying excess baggage fees.

2011 - VIP ushers in the four wheeling revolution in india with the launch of its 360 wheeling range.

Awards

The company received Golden Peacock Innovation Award in the year 2004.

VIP received Rajiv Gandhi National Quality Award in the year 2003.

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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