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RESULTS REVIEW 4QFY17 22 MAY 2017
V-Guard NEUTRAL
HDFC securities Institutional Research is also available on Bloomberg HSLB <GO>& Thomson Reuters
Near-term headwinds V-Guard’s 4QFY17 revenue grew by a strong 21% (17% volume growth) to Rs 6.2bn (est 16% growth). V-Guard’s revenue recovery was encouraging, as 3QFY17 revenue growth was only 10% owing to the demonet impact. Cables & Wires, Stabilizers, Pumps and Fans (80% of business) registered robust growth of 21%, 25%, 24% and 14% respectively.
However, we are disappointed on the margin front. Gross margin contracted by a steep 193bps, owing to high RM costs and a delay in price hikes. Higher employee costs (+89bps) resulted in a 284bps fall in EBITDA margin to 9.5%. EBITDA and PAT declined by 6% and 1% respectively (lower than expectations).
V-Guard’s performance in FY17 was satisfying, as sales, EBITDA and PAT were up 16%, 21% and 36% respectively. However, we foresee certain challenges for the company owing to GST implementation. The GST rate would increase V-Guard’s effective indirect tax rate to ~24% vs ~17% currently. Owing to this, V-Guard would need to hike prices by ~6-7%. Stabilizers and Cables & Wires would be most impacted, and would necessitate a ~8-9% price hike.
Hence, near-term revenue growth and margins could be under pressure.
However, we remain bullish on V-Guards’ long-term earnings potential. Its operational performance has witnessed steady improvement led by (1) Market expansion through addition of geographies, (2) Consistent dealer expansion in the Non-South market, (3) Lowering price discounts in Non-South (4) Favourable business environment (across products), (5) Regular new launches (6) Key supply chain initiatives and (7) Reduction in debt level.
We maintain our TP at Rs 201, based on a P/E of 32x Mar-19EPS. Hence, with a limited upside, we downgrade our rating to NEUTRAL from BUY.
Near-term view: A higher tax burden (post GST implementation) would call for a 6-7% price hike. We expect V-Guard would make gradual price hikes to remain competitive (especially in Wires). Hence, near-term growth and margin expansion can be challenging. The stock could be under pressure in the near term.
Financial Summary Year Ending March (Rs mn) 4QFY17 4QFY16 YoY (%) 3QFY17 QoQ (%) FY15 FY16 FY17P FY18E FY19E Net Sales 6,233 5,133 21.4 4,596 35.6 17,459 18,623 21,506 25,016 29,059 EBITDA 594 635 (6.4) 386 53.9 1,330 1,780 2,151 2,601 3,318 APAT 415 420 (1.2) 280 48.4 707 1,117 1,515 1,979 2,641 Diluted EPS (Rs) 0.9 0.7 29.2 1.3 (28.8) 1.7 2.7 3.6 4.7 6.2 P/E (x)
115.6 73.5 54.7 41.8 31.4
EV / EBITDA (x)
61.9 46.0 38.0 31.1 24.0 Core RoCE (%)
18.2 24.1 27.6 30.3 35.4
Source: Company, HDFC sec Inst Research
INDUSTRY Electrical
Equipment and Appliances
CMP (as on 22 May 17) Rs 194
Target Price Rs 201
Nifty 9,438
Sensex 30,571
KEY STOCK DATA Bloomberg VGRD IN
No. of Shares (mn) 425
MCap (Rs bn)/(US$ mn) 83/1,279
6m avg traded value (Rs mn) 149
STOCK PERFORMANCE (%)
52 Week high / low Rs 221 / 84
3M 6M 12M
Absolute (%) 28.0 62.0 128.2
Relative (%) 22.0 44.2 107.4
SHAREHOLDING PATTERN (%)
Promoters 65.17
FIs & Local MFs 10.06
FPIs 12.52
Public & Others 12.25 Source : BSE
Naveen Trivedi [email protected] +91-22-6171-7324
V-GUARD : RESULTS REVIEW 4QFY17
Page | 2
Quarterly Financials Particulars 4QFY17 4QFY16 YoY (%) 3QFY17 QoQ (%) Net Revenue 6,233 5,133 21.4 4,596 35.6 Material Expenses 4,439 3,557 24.8 3,052 45.5 Employee Expenses 399 282 41.2 338 18.0 Other Operating Expenses 801 659 21.5 820 (2.3) EBITDA 594 635 (6.4) 386 53.9 Depreciation 42 38 9.8 42 - EBIT 552 596 (7.5) 344 60.5 Other Income 32 21 53.6 33 (4.1) Interest Cost 5 12 (61.3) 5 (4.9) PBT 579 605 (4.3) 372 55.5 Tax 164 185 (11.3) 93 77.0 RPAT 415 420 (1.2) 280 48.4 Source: Company, HDFC sec Inst Research * Estimated Margin Analysis MARGIN ANALYSIS 4QFY17 4QFY16 YoY (%) 3QFY17 QoQ (%) Material Expenses 71.2 69.3 193 66.4 482 Employee Expenses 6.4 5.5 89 7.4 (96) Other Operating Expenses 12.9 12.8 1 17.8 (499) EBITDA Margin 9.5 12.4 (284) 8.4 113 Tax Rate 28.3 30.6 (224) 24.9 343 PAT Margin 6.7 8.2 (152) 6.1 58 Source: Company, HDFC sec Inst Research
Revenue growth stood at 21.4%, better than our expectation of 16%. Volume growth was 17% in 4QFY17 Gross margin contracted by 193bps, on account of high raw material prices and delay in price hike. Price hike of ~4% in April would cover the rise in RM costs Employee cost increased by a sharp 41%, led by new hiring and higher provisions Ad expense was down 14% YoY, and stood at 2.7% of sales in 4QFY17 EBITDA margin was down 284bps YoY at 9.5%, lower than our estimates PAT was down 1.2% at Rs 415mn, lower than our expectations Tax rate was down 224bps in 4QFY17. Management guided for a tax rate of 25-26% in FY18 and 24-25% in FY19 NPM dipped by 152bps YoY
V-GUARD : RESULTS REVIEW 4QFY17
Page | 3
Segmental Quarterly Performance (Rs mn) 4QFY17 4QFY16 YoY (%) 3QFY17 QoQ (%) Segmental Revenues Electronics 1,955 1,560 25.3 1,188 64.6 Electrical/Electro mechanical 4,072 3,388 20.2 3,203 27.1 Others 206 185 11.4 205 0.4 Total 6,233 5,133 21.4 4,596 35.6 Segmental EBIT Electronics 229 231 (0.9) 115 98.0 Electrical/Electro mechanical 312 350 (10.7) 228 36.8 Others 23 38 (40.2) 28 (19.3) Total 563 618 (8.9) 372 51.6 Less: (a) Interest Cost & Bank Charges 5 12 (61.4) 5 (5.0) (b) Other Un-allocable Expenses (20) 1 (2,397.6) (6) 262.3 PBT 579 605 (4.3) 372 55.5 Capital Employed Electronics 1,339 1,135 17.9 910 47.1 Electrical/Electro mechanical 3,312 2,718 21.9 2,877 15.1 Others 284 222 28.0 289 (1.7) Total 4,935 4,075 21.1 4,076 21.1 Unallocable Capital Employed 1,436 632 127.3 1,814 (20.8) Total Capital Employed 6,371 4,707 35.4 5,890 8.2 Source: Company, HDFC sec Inst Research Segmental PBIT Margin (Rs mn) 4QFY17 4QFY16 YoY (%) 3QFY17 QoQ (%) Electronics 11.7 14.8 (309) 9.7 197 Electrical/Electro mechanical 7.7 10.3 (265) 7.1 54 Others 11.0 20.5 (950) 13.7 (268) Total 9.0 12.0 (300) 8.1 95 Source: Company, HDFC sec Inst Research
Robust revenue growth reported in both segments Higher Electronics segment growth was on account of 25% growth in Stabilisers Cables & Wires segment growth at 21% aided the Electrical segment EBIT margin declined for both the segments owing to high raw material cost and delay in price hike
V-GUARD : RESULTS REVIEW 4QFY17
Page | 4
Product-wise Quarterly Performance Products 4Q FY16 1Q FY17 2Q FY17 3Q FY17 4Q FY17 Revenue (Rs mn) Stabilizers 1,001 1,455 821 834 1,251 UPS (Digital + Standalone) 544 749 545 353 704 Pumps 741 679 497 595 915 Cables & Wires (PVC + LT) 1,546 1,538 1,540 1,381 1,877 Water Heaters (Electric + Solar) 404 518 919 960 446 Fan 720 600 336 301 823 New Products Total 176 188 294 171 217 Total 5,132 5,727 4,952 4,595 6,233 Revenue Growth (%) Stabilizers 25.9 21.6 14.7 9.3 25.0 UPS (Digital + Standalone) 6.0 25.5 12.6 5.1 29.4 Pumps 19.7 32.4 20.0 37.7 23.5 Cables & Wires (PVC + LT) 1.5 (0.5) 3.3 5.8 21.4 Water Heaters (Electric + Solar) 27.4 4.4 24.9 5.8 10.4 Fan 45.7 19.8 17.9 15.3 14.3 New Products Total 14.3 30.6 40.0 7.5 23.3 Total 16.2 14.7 14.2 10.4 21.5 Revenue Mix (%) Stabilizers 19.5 25.4 16.6 18.2 20.1 UPS (Digital + Standalone) 10.6 13.1 11.0 7.7 11.3 Pumps 14.4 11.9 10.0 12.9 14.7 Cables & Wires (PVC + LT) 30.1 26.9 31.1 30.1 30.1 Water Heaters (Electric + Solar) 7.9 9.0 18.6 20.9 7.2 Fan 14.0 10.5 6.8 6.6 13.2 New Products Total 3.4 3.3 5.9 3.7 3.5 Total 100.0 100.0 100.0 100.0 100.0 Source: Company, HDFC sec Inst Research
Stabilizers continue to show strong growth in the last 5-6 quarters UPS growth picked up significantly after lacklustre growth in the last 2 quarters Pumps segment is sustaining high growth in the last several quarters Water Heater growth was lower than our expectations Fan growth has normalised, but is ahead of industry growth Cables & Wire business growth in 4QFY17 was high, but this was expected V-Guard has a history of successful new launches. New product growth was strong at 23% in 4Q. The recovery after demonet was significant
V-GUARD : RESULTS REVIEW 4QFY17
Page | 5
Net Revenue Gross Margin
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research ASP Expense Employee Expense
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research
Sales growth during 4Q was better-than-expected, and has improved significantly after demonet impacted 3Q performance Gross margin was down by a sharp 193bps YoY Employee expense grew by a sharp 41% owing to new hiring, extra provisions and ESOP impact
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
4Q F
Y14
1Q F
Y15
2Q F
Y15
3Q F
Y15
4Q F
Y15
1Q F
Y16
2Q F
Y16
3Q F
Y16
4Q F
Y16
1Q F
Y17
2Q F
Y17
3Q F
Y17
4Q F
Y17
Net Sales YoY Gr. (%) - RHSRs mn %
25.0
27.0
29.0
31.0
33.0
35.0
-
500
1,000
1,500
2,000
4Q F
Y14
1Q F
Y15
2Q F
Y15
3Q F
Y15
4Q F
Y15
1Q F
Y16
2Q F
Y16
3Q F
Y16
4Q F
Y16
1Q F
Y17
2Q F
Y17
3Q F
Y17
4Q F
Y17
Gross Profit Gross Margin (%) - RHS
Rs mn %
4.0
5.0
6.0
7.0
8.0
9.0
-
100
200
300
400
500
2Q F
Y15
3Q F
Y15
4Q F
Y15
1Q F
Y16
2Q F
Y16
3Q F
Y16
4Q F
Y16
1Q F
Y17
2Q F
Y17
3Q F
Y17
4Q F
Y17
ASP (% of Sales) - RHSRs mn %
4.0
5.0
6.0
7.0
8.0
-
100
200
300
400
2Q F
Y15
3Q F
Y15
4Q F
Y15
1Q F
Y16
2Q F
Y16
3Q F
Y16
4Q F
Y16
1Q F
Y17
2Q F
Y17
3Q F
Y17
4Q F
Y17
Employee Expense (% of Sales) - RHSRs mn %
V-GUARD : RESULTS REVIEW 4QFY17
Page | 6
EBITDA APAT
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research South Sales Performance Non-South Sales Performance
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research
EBITDA margin contracted after expansion in previous 7 consecutive quarters South revenue grew by healthy 17%, after weak growth of 5% in 3QFY17 Non-South continued to show stellar performance, and reported 30% growth owing to higher regional penetration
5.0
7.0
9.0
11.0
13.0
-
120
240
360
480
600
720
4Q F
Y14
1Q F
Y15
2Q F
Y15
3Q F
Y15
4Q F
Y15
1Q F
Y16
2Q F
Y16
3Q F
Y16
4Q F
Y16
1Q F
Y17
2Q F
Y17
3Q F
Y17
4Q F
Y17
EBITDA EBITDA Margin (%) - RHSRs mn %
1.0
3.0
5.0
7.0
9.0
-
110
220
330
440
4Q F
Y14
1Q F
Y15
2Q F
Y15
3Q F
Y15
4Q F
Y15
1Q F
Y16
2Q F
Y16
3Q F
Y16
4Q F
Y16
1Q F
Y17
2Q F
Y17
3Q F
Y17
4Q F
Y17
APAT NPM (%) - RHS
Rs mn %
(5.0)
-
5.0
10.0
15.0
20.0
25.0
-
1,000
2,000
3,000
4,000
4Q F
Y14
1Q F
Y15
2Q F
Y15
3Q F
Y15
4Q F
Y15
1Q F
Y16
2Q F
Y16
3Q F
Y16
4Q F
Y16
1Q F
Y17
2Q F
Y17
3Q F
Y17
4Q F
Y17
South Sales Growth (%) - RHSRs mn %
(10.0)
-
10.0
20.0
30.0
40.0
50.0
-
500
1,000
1,500
2,000
2,500
4Q F
Y14
1Q F
Y15
2Q F
Y15
3Q F
Y15
4Q F
Y15
1Q F
Y16
2Q F
Y16
3Q F
Y16
4Q F
Y16
1Q F
Y17
2Q F
Y17
3Q F
Y17
4Q F
Y17
Non-South Sales Growth (%) - RHS
Rs mn %
V-GUARD : RESULTS REVIEW 4QFY17
Page | 7
Sales Performance EBITDA Margin
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research PAT Performance In-house Manufacturing Vs. Outsourcing
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research
Sales growth has slowed, but was still >15% growth in FY17 EBITDA margin increased in the last 2 years No big change in outsourcing and manufacturing strategy
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
-
4,000
8,000
12,000
16,000
20,000
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Net Sales Growth (%) - RHS Avg. Gr (%)
Rs mn %
6.0
7.5
9.0
10.5
12.0
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
EBITDA Margin (%) Avg. Margin (%)
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
-
400
800
1,200
1,600
FY08
FY09
FY10
FY11
FY12
FY13
FY14
FY15
FY16
FY17
APAT NPM (%) - RHS Avg. Margin (%)
Rs mn %
60% 59% 60% 57% 60% 60% 60%
40% 41% 40% 43% 40% 40% 40%
0%
20%
40%
60%
80%
100%
FY11
FY12
FY13
FY14
FY15
FY16
FY17
In-house Outsourced
V-GUARD : RESULTS REVIEW 4QFY17
Page | 8
South & Non-South Sales Mix Dealer Network
Source: Company, HDFC sec Inst Research Source: Company, HDFC sec Inst Research
Dealer expansion in Non-South has been >4x during FY11-17 vs. 2.5x in South. This reflects management’s strong efforts to become a national brand
78% 79% 75% 70% 67% 67% 65%
22% 21% 25%30% 33% 33% 35%
0%
20%
40%
60%
80%
100%
FY11
FY12
FY13
FY14
FY15
FY16
FY17
South Non-South
103 110 134187
208 216 231
97 95
167
220
328
408445
0
120
240
360
480
FY11
FY12
FY13
FY14
FY15
FY16
FY17
South Non-South
V-GUARD : RESULTS REVIEW 4QFY17
Page | 9
Assumptions Particulars FY15 FY16 FY17P FY18E FY19E Revenue Growth (%)
Stabilizers 22.7 12.5 18.6 14.4 15.0 UPS (Digital + Standalone) 20.6 (11.7) 19.9 14.8 15.4 Pumps (6.5) 11.1 27.9 17.9 16.0 Cables & Wires (PVC + LT) 6.8 0.9 7.6 17.5 16.0 Water Heaters (Electric + Solar) 30.1 11.5 11.8 14.5 14.3 Fan 34.3 28.5 16.6 16.4 16.0 New Products Total 43.7 17.0 26.3 21.9 31.1
Gross Margin (%) 25.4 28.9 32.4 32.9 33.4 ASP (% of sales) 4.0 4.3 4.3 4.3 4.3 Distribution (% of sales) 1.0 1.0 1.0 1.0 1.0 EBITDA Margin (%) 7.6 9.6 10.0 10.4 11.4 ETR (%) 30.3 30.6 27.9 25.8 25.0 Source: Company, HDFC sec Inst Research Change in Estimates
Particulars (Rs mn) FY18E FY19E
OLD NEW Chg (%) OLD NEW Chg (%) Sales 24,374 25,016 2.6 28,078 29,059 3.5 EBITDA 2,805 2,601 (7.3) 3,361 3,318 (1.3) APAT 2,111 1,979 (6.3) 2,627 2,641 0.5 Source: HDFC sec Inst Research
V-GUARD : RESULTS REVIEW 4QFY17
Page | 10
Income Statement Year End March (Rs mn) FY15 FY16 FY17P FY18E FY19E Net Revenues 17,459 18,623 21,506 25,016 29,059 Growth (%) 15.0 6.7 15.5 16.3 16.2 Material Expenses 13,023 13,247 14,547 16,790 19,352 Employee Expense 1,097 1,266 1,375 1,547 1,772 ASP Expense 690 803 927 1,079 1,253 Distribution Expense 181 194 222 259 300 Other Expenses 1,059 1,248 2,186 2,627 2,931 EBITDA 1,330 1,780 2,151 2,601 3,318 EBITDA Growth (%) 8.5 33.8 20.8 21.0 27.5 EBITDA Margin (%) 7.6 9.6 10.0 10.4 11.4 Depreciation 154 154 162 178 194 EBIT 1,176 1,627 1,988 2,423 3,123 Other Income (Including EO Items) 45 72 135 252 399
Interest 206 89 21 6 2 PBT 1,015 1,610 2,102 2,668 3,521 Tax 307 493 587 689 880 RPAT 707 1,117 1,514 1,979 2,641 Adjustment - - - - - APAT 707 1,117 1,515 1,979 2,641 APAT Growth (%) 0.8 57.9 35.6 30.6 33.4 Adjusted EPS (Rs) 1.7 2.7 3.6 4.7 6.2 EPS Growth (%) 0.4 57.3 34.5 30.6 33.4
Source: Company, HDFC sec Inst Research
Balance Sheet Year End March (Rs mn) FY15 FY16 FY17P FY18E FY19E SOURCES OF FUNDS Share Capital - Equity 300 301 425 425 425 Reserves 3,478 4,407 5,922 7,403 9,423 Total Shareholders Funds 3,777 4,708 6,346 7,828 9,847 Long Term Debt 212 56 24 4 2 Short Term Debt 368 15 1 1 1 Total Debt 580 71 25 5 3 Net Deferred Taxes 92 75 54 54 54 Long Term Provisions & Others 181 176 217 245 275 TOTAL SOURCES OF FUNDS 4,630 5,029 6,642 8,131 10,180 APPLICATION OF FUNDS Net Block 1,624 1,611 1,684 1,812 1,918 CWIP 24 21 125 55 55 Non Current Investments - - - - - LT Loans & Advances 176 180 303 318 333 Other Non Current Assets - 2 1 1 1 Total Non-current Assets 1,824 1,814 2,113 2,185 2,306 Inventories 2,608 2,047 2,736 3,183 3,697 Debtors 2,437 2,792 3,193 3,714 4,314 Other Current Assets 358 242 318 318 318 Cash & Equivalents 22 270 1,022 1,889 3,175 Total Current Assets 5,425 5,351 7,269 9,104 11,504 Creditors 1,935 1,511 2,206 2,546 2,935 Other Current Liabilities & Provns 685 625 534 611 696 Total Current Liabilities 2,619 2,136 2,740 3,158 3,631 Net Current Assets 2,805 3,216 4,530 5,946 7,874 TOTAL APPLICATION OF FUNDS 4,630 5,029 6,642 8,131 10,180
Source: Company, HDFC sec Inst Research
V-GUARD : RESULTS REVIEW 4QFY17
Page | 11
Cash Flow Statement Year End March (Rs mn) FY15 FY16 FY17P FY18E FY19E Reported PBT 1,610 1,610 2,102 2,668 3,521 Non-operating & EO Items 84 - - - - Interest Expenses 78 89 21 6 2 Depreciation 154 154 162 178 194 Working Capital Change (116) (517) (576) (550) (641) Tax Paid (498) (511) (587) (689) (880) OPERATING CASH FLOW ( a ) 1,311 825 1,122 1,614 2,195 Capex (140) (108) (339) (236) (300) Free Cash Flow (FCF) 1,171 717 782 1,378 1,895 Investments (194) (209) (819) (165) (165) Non-operating Income 18 - - - - INVESTING CASH FLOW ( b ) (315) (317) (1,159) (401) (465) Debt Issuance/(Repaid) (574) (178) (44) (7) 12 Interest Expenses (73) (89) (21) (6) (2) FCFE 524 450 717 1,364 1,906 Share Capital Issuance 31 58 124 - - Dividend (325) (246) - (497) (621) Others - - 34 14 17 FINANCING CASH FLOW ( c ) (941) (456) 92 (496) (594) NET CASH FLOW (a+b+c) 54 53 55 717 1,136 EO Items, Others (0) (2) - - - Closing Cash & Equivalents 22 76 131 848 1,984
Source: Company, HDFC sec Inst Research
Key Ratios FY15 FY16 FY17P FY18E FY19E PROFITABILITY (%) GPM 25.4 28.9 32.4 32.9 33.4 EBITDA Margin 7.6 9.6 10.0 10.4 11.4 EBIT Margin 6.7 8.7 9.2 9.7 10.7 APAT Margin 4.1 6.0 7.0 7.9 9.1 RoE 20.3 26.3 27.4 27.9 29.9 RoIC (or Core RoCE) 18.2 24.1 27.6 30.3 35.4 RoCE 18.8 24.4 26.2 26.9 28.9 EFFICIENCY Tax Rate (%) 30.3 30.6 27.9 25.8 25.0 Fixed Asset Turnover (x) 7.3 7.4 7.8 8.2 8.6 Inventory (days) 54.5 40.1 46.4 46.4 46.4 Debtors (days) 50.9 54.7 54.2 54.2 54.2 Other Current Assets (days) 7.5 4.7 5.4 4.6 4.0 Payables (days) 40.4 29.6 37.4 37.2 36.9 Other Current Liab & Provns (days) 14.3 12.2 9.1 8.9 8.7 Cash Conversion Cycle (days) 58.2 57.7 59.5 59.2 59.0 Net D/E (x) 0.1 (0.0) (0.2) (0.2) (0.3) Interest Coverage (x) 5.7 18.2 94.8 377.5 1,929.4 PER SHARE DATA (Rs) EPS 1.7 2.7 3.6 4.7 6.2 CEPS 2.1 3.0 3.9 5.1 6.7 Dividend 0.5 0.7 0.7 1.0 1.3 Book Value 12.6 15.6 14.9 18.4 23.2 VALUATION P/E (x) 115.6 73.5 54.7 41.8 31.4 P/BV (x) 15.5 12.5 13.0 10.6 8.4 EV/EBITDA (x) 61.9 46.0 38.0 31.1 24.0 EV/Revenues (x) 4.7 4.4 3.8 3.2 2.7 OCF/EV (%) 1.6 1.0 1.4 2.0 2.8 FCF/EV (%) 0.9 1.4 1.0 1.7 2.4 FCFE/Mkt Cap (%) 0.6 0.5 0.9 1.6 2.3 Dividend Yield (%) 0.2 0.4 0.4 0.5 0.6
Source: Company, HDFC sec Inst Research
V-GUARD : RESULTS REVIEW 4QFY17
Page | 12
RECOMMENDATION HISTORY
Rating Definitions BUY : Where the stock is expected to deliver more than 10% returns over the next 12 month period NEUTRAL : Where the stock is expected to deliver (-)10% to 10% returns over the next 12 month period SELL : Where the stock is expected to deliver less than (-)10% returns over the next 12 month period
Date CMP Reco Target 19-May-16 85 BUY 107 29-Jul-16 114 BUY 131 24-Oct-16 139 BUY 158 21-Nov-16 124 BUY 167 10-Jan-17 118 BUY 163 31-Jan-17 146 BUY 175 14-Apr-17 182 BUY 201 22-May-17 194 NEU 201
507090
110130150170190210230250
May
-16
Jun-
16
Jul-1
6
Aug-
16
Sep-
16
Oct
-16
Nov
-16
Dec-
16
Jan-
17
Feb-
17
Mar
-17
Apr-
17
May
-17
V Guard TP
V-GUARD : RESULTS REVIEW 4QFY17
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Disclosure: I, Naveen Trivedi, MBA, author and the name subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. HSL has no material adverse disciplinary history as on the date of publication of this report. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or its Associate may have beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further Research Analyst or his relative or HDFC Securities Ltd. or its associate does not have any material conflict of interest. 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V-GUARD : RESULTS REVIEW 4QFY17
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