BUY HINDPETRO | TARGET: Rs 274 | STOP LOSS: Rs 300
Despite the massive selloff in the markets, the stock was trading in green during Monday’s session. It is hovering exactly above the placement of its 200 DSMA and DEMA. Also, we are witnessing multiple bottom near 274 mark which indicates a possibility of bounce from here on. Thus, traders can buy the stock near 284 - 282 mark with a stop loss of 274 for upside target of 300 in 1 – 2 weeks.
BUY VGUARD | TARGET: Rs 210 | STOP LOSS: Rs 236
The stock has recently corrected from the top of 275 towards the recent bottom of 210 without any meaningful bounce. Thus, it has entered an oversold zone. The stock is at a support of ICHIMOKU indicator in daily weekly and monthly time frame. This indicates that it is poised for a strong bounce. Thus, we advise traders to accumulate the stock in the range of 222 - 218 with a stop loss of 210 for an upside target of 236 in coming 1 – 2 weeks.
About Vguard
LKP Securities has buy call on V-Guard Industries with a target price of Rs 281. The current market price of V-Guard Industries is Rs 215.55. Time period given by analyst is one year when V-Guard Industries Ltd. price can reach defined target.
V-Guard Industries Ltd., incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 9331.06 Crore) operating in Consumer Durables sector.
V-Guard Industries Ltd. key Products/Revenue Segments include Electricals, Electronics & Mechanical Components, Consumer Durables, Scrap, Other Operating Revenue and Sale of services for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 970.07 Crore, up 6.60 % from last quarter Total Income of Rs 909.97 Crore and up 15.40 % from last year same quarter Total Income of Rs 840.60 Crore. Company reported net profit after tax of Rs 53.92 Crore in latest quarter.
Investment Rationale
The current year has been a tough one for the company due to lockdowns and rising inflation leading to lower consumer demand. However, the company has been able to grow its revenue significantly on back of strong distribution network, efficient manufacturing operations and wide product portfolio. The margin was impacted severely for the nine months which the company is expecting to move up to normative levels in the next few quarters led by continuous price hikes, fading of one time factory costs and operating leverage kicking in. The brokerage expects the company to move ahead much stronger with focus on increasing the inhouse manufacturing levels to improve the product quality, increase gross margins. It maintains a BUY on VGIL with a target price of ₹281
Promoter/FII Holdings
Promoters held 55.96 per cent stake in the company as of 31-Dec-2021, while FIIs owned 14.32 per cent, DIIs 15.99 per cent.
Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
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