Value Pick December ’18: VIP Industries Limited
VIP Industries Limited, popularly known as ‘VIP’ is an Indian luggage maker which is the world’s second largest and Asia’s largest luggage maker based in Mumbai, Maharashtra, India.
History: VIP Industries
Incorporated in the year 1968, VIP Industries Limited manufactures and sells luggage bags and accessories.
The very first VIP Suitcase was manufactured in the year 1971. Since then, VIP Industries has sold over 60 million pieces of luggage to people around the world and have subsequently become the foremost manufacturer of hard and soft luggage in Asia, with a goal to make travelling simple.
Business & Products:
VIP manufactures an array of products and provides numerous different services with an aim to make travel simple and convenient for millions of people around the world.
The Company offers hard and soft luggage including ladies handbags, backpacks, briefcases, duffel-bags, hard suitcases, laptop bags, printed polycarbonate luggage products, rucksacks, school bags, soft uprights, vanity cases, trolleys, travel accessories and short haul products.
VIP Industries ‘Brands’
VIP Industries Limited is the parent of many renowned brands, like –
- VIP,
- Aristocrat,
- Alfa,
- Footloose,
- Skybags, and
- Carlton
All these brands cover the entire spectrum of travel products.
VIP ‘Network’
VIP Industries Limited has more than 8000 retail outlets across India and with a network of over 1300 retailers across 27 countries.
Special Feature:
With a product range which includes Injection Moulded PP Cases and Furniture, Vacuum formed PC and ABS cases and Soft sided luggage in Nylon, Polyester and EVA material, VIP Industries Limited has several innovations in product design and technology.
The company exports its products to 31 international locations including the UAE, USA, Sweden, Qatar and Kuwait.
Listed On:
The shares of VIP Industries Limited are presently listed at Bombay Stock Exchange (BSE); CODE – 507880 and National Stock Exchange (NSE) as VIPIND
Stock Info – VIP Industries Limited
Share Holding Pattern
Financials – VIP Industries Limited
Conclusion
VIP Industries Limited is Asia’s largest and world’s 2nd largest luggage maker
The company is having sound management and the promoters are having steady stake (more than 50%) since last 4 quarters.
Besides, the company is enjoying leadership position as far as luggage industry is concern with market share close to 55%.
Along with that some of the reputed fund houses like Franklin Templeton India, Reliance Capital Trustee, TATA AIA Life Insurance, and well-known investor Rakesh Jhunjhunwala is having more than 1% stake in the company.
For the quarter ended 30 September 2018, the company’s profit jumped more than 29% YOY (INR 46.94 Cr versus INR 36.24 Cr). Revenue grew close to 30% YOY (INR 401.78 Cr versus INR 309.22 Cr)
It is estimated that India’s organised luggage industry is likely to grow at a healthy pace going forward, led by rising income, increasing women workforce, growing interest of people in tourism and rising preference for branded products with growing acceptance of handbags as a lifestyle product.
On the technical front, VIP Industries has seen good accumulation from mid-October. The stock looks good on the daily chart for medium-term investment and is also trading above important moving averages like the 200 DMA level on the weekly chart.
Considering the above mentioned factors, VIP Industries Limited looks good at INR 525. FinBlab recommends investing in a stock keeping a long-term view in mind. (One can accumulate on decline also)
Value Pick : November 2018
G.M.Breweries Limited
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