VIP Industries share price increased by nearly 11% after the company reported a profit in the June quarter

VIP Industries

On August 12, VIP Industries' price jumped about 11% intraday after the business reported a consolidated net profit of Rs 2.53 crore, compared to a loss of Rs 51.32 crore the previous year.

An annual loss of Rs 51.32 crore has been replaced by a profit of Rs 2.53 crore in the June quarter. As a result of the company's consolidated net profit of Rs 2.53 crore, its share price rose nearly 11 percent intraday on August 12th. Compared to a year ago, the company's revenue has increased from Rs 58.21 crore to Rs 220.58 crore.

Due to stiff competition and rising raw material costs, VIP faced margin challenges during the last fiscal year. The company was concerned about the possibility that the demand recovery would be halted, and that restoring margins to pre-COVID levels would be a difficult task. Our target P/E multiple has been increased to 30x (from 28x) and we've arrived at a price target of Rs 457. We've also pushed back our valuation date to September 23. 

VIP Industries was trading at Rs 424.15, an increase of Rs 38.05 or 9.85 percent on the BSE at 0955 hrs.Shares of the company reached a 52-week high of Rs 436.90 on July 7, 2021, and a 52-week low of Rs 254.85 on August 11, 2020, respectively.The stock is currently trading 2.92 percent below its 52-week high and 66.43 percent above its 52-week low, according to Bloomberg.

 Reductions in CSR expenditures and factory-related costs as the plant was closed for a period of time were responsible for this reduction in expenses. All discretionary expenditures were also eliminated. Personnel costs were almost identical to last year's levels for both the same period and the following quarter, according to the data.Hard and soft luggage manufacturer VIP Industries is the largest in Asia.

 

Source:- MoneyControl

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