This Indian Stock Has Risen 3,985% Since 2008; Good Time To Invest In It
Kerala-headquartered V-Guard Industries Ltd has evolved into one of India’s leading consumer-durable companies. It has witnessed a 3,985% rise since its 2008 listing.
The company, which started 40 years ago with a mere Rs. 100,000 now has products ranging from food mixers to fans and is betting that the rising personal incomes in the world’s second-most populous nation and more than a billion mobile-phone connections will boost its sales further.
V-Guard expects sales to rise 12% in the fiscal year through March 31. Revenue growth is expected to recover to at least 15% in its new financial year starting April.
Right now, the company is betting on the Internet of Things (IoT). IoT is a network of physical devices, vehicles, home appliances, and other items embedded with electronics, software, sensors, actuators, and network connectivity which enables these objects to connect and exchange data.
According to its Managing Director Mithun Chittilappilly, IOT is the next big step for the company as smart-phone users are expected to rise every passing day and more people are becoming tech savvy. The company plans to sell “smart fans” after introducing water heaters and power back-up systems that use similar technology, he further added.
To cash in on the favorable demand scenario in the upcoming peak season (Q4), V-Guard’s plans to enhance the reach of its brands through higher advertisement and promotional spends. By doing so, the company will reposition itself as a pan-India multi-product player in the consumer electrical space.
V-Guard has reported a 41.39% increase in standalone net profit at Rs. 35.76 crore for the quarter ended December 31, 2017. Total income grew 16.75% to Rs. 526.08 crore as against Rs. 450.58 crore in the corresponding quarter previous fiscal. The company is expecting a consistent 12% rise in sales through the end of March 2022. It would be a good idea to invest in the company’s stock.