BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
Edelweiss maintains hold on V-Guard Industries
Industries reported flat revenue as it lost 2 weeks of sales
(INR700-800mn) due to significant channel destocking and build-up of
inventory at its excise-free Kashipur factory. Management expects
revenue to stabilise as restocking begins with majority of price
increase having finished. Margin, at 5.8%, (down 600bps YoY) was
impacted by 130bps dip in gross margin (led by increase in raw material
costs), one-off expenses (INR10mn for setting up Sikkim factory, INR30mn
ESOP charges) and increase in employee cost (200bps impact on margin).
One of the key sectoral observations was 6-8% price hike by unorganised
players, which we believe was due to GST impact.