Mar'25 View on V I P Industries Ltd

VIP Industries is engaged interalia, in the business of manufacturing and marketing of luggage, bags and accessories. The company is Asia’s leading and the world’s 2nd-largest manufacturer and retailer of luggage, backpacks, and handbags. After making high near 740 and the low of 280, the stock is hovering around same level but looks to gain positive ground due to following factors. • Company reported healthy volume growth of 13% yoy. • Management laid down a 12-month road map to re-gain lost glory & market share. • Institutional sales continues to grow on the back of focused efforts. • Net Borrowing has been reduced by Rs. 86 crs in line with overall reduction plan. • There was inventory reduction of Rs. 224 crs over March 2024. • VIP Industries reported a weak operational performance. • We expect VIP to push for E-com, digital marketing & Modern Trade channels. • We expect earnings to grow by 94.2% in FY26E & grow by 45.4% in FY27E. • Stock is currently trading at valuation of 25.6 P/E FY27E EPS.