V-GUARD INDUSTRIES

V-Guard Industries had hit a new 52-week high on the back of its very good performance for Q2FY17. On a 14% (YoY) rise in total income at Rs.495 crore, the company posted a 69% jump in net profit at Rs.39 crore. EBITDA rose 46% at Rs.53 crore while margins jumped up from 8.4% t0 10.8%.

Owing to better market conditions, products like Electric Water Heaters, Pumps, Fan and Digital UPS have done extremely well during the quarter under review. Onam season was positive with categories related to festive season doing well. Reduction in cost of goods sold is due to reduced input cost and continued cost savings from supply chain initiatives. Gas cooktops was launched in Kerala market during this Onam season

The good news is that for H1FY17, the company has already clocked a net profit of Rs.82 crore while it had ended FY16 with a net profit of Rs.112 crore; clearly indicating that with two more quarters to go, it will end current fiscal on a much higher note. Equity stands at Rs.30.18 and annualized EPS is at Rs.6 (FV of Re.1).