BSE:507880

Stock Analysis Report

Executive Summary

VIP Industries Limited manufactures and sells luggage bags and accessories in India.


Snowflake Analysis

High growth potential with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has VIP Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 507880 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.8%

507880

-0.5%

IN Luxury

-1.5%

IN Market


1 Year Return

5.5%

507880

18.2%

IN Luxury

10.7%

IN Market

Return vs Industry: 507880 underperformed the Indian Luxury industry which returned 18.2% over the past year.

Return vs Market: 507880 underperformed the Indian Market which returned 10.7% over the past year.


Shareholder returns

507880IndustryMarket
7 Day-5.8%-0.5%-1.5%
30 Day1.1%3.0%-2.7%
90 Day4.3%9.2%1.3%
1 Year6.0%5.5%19.0%18.2%12.7%10.7%
3 Year219.5%211.8%52.2%48.8%22.0%15.1%
5 Year368.5%342.3%106.9%100.1%34.5%22.0%

Price Volatility Vs. Market

How volatile is VIP Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

1 year ago | Simply Wall St

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1 year ago | Simply Wall St

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Valuation

Is VIP Industries undervalued compared to its fair value and its price relative to the market?

50.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 507880 (₹457.3) is trading above our estimate of fair value (₹233.88)

Significantly Below Fair Value: 507880 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 507880 is poor value based on its PE Ratio (50.7x) compared to the Luxury industry average (11.2x).

PE vs Market: 507880 is poor value based on its PE Ratio (50.7x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: 507880 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 507880 is overvalued based on its PB Ratio (10.5x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is VIP Industries forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

24.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 507880's forecast earnings growth (24.3% per year) is above the savings rate (6.5%).

Earnings vs Market: 507880's earnings (24.3% per year) are forecast to grow faster than the Indian market (20.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 507880's revenue (11.6% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 507880's revenue (11.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 507880's Return on Equity is forecast to be high in 3 years time (27.7%)


Next Steps

Past Performance

How has VIP Industries performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 507880 has a large one-off loss of ₹470.5M impacting its December 31 2019 financial results.

Growing Profit Margin: 507880's current net profit margins (6.9%) are lower than last year (9.1%).


Past Earnings Growth Analysis

Earnings Trend: 507880's earnings have grown by 20% per year over the past 5 years.

Accelerating Growth: 507880's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 507880 had negative earnings growth (-17.8%) over the past year, making it difficult to compare to the Luxury industry average (5.6%).


Return on Equity

High ROE: 507880's Return on Equity (20.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is VIP Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 507880's short term assets (₹8.5B) exceed its short term liabilities (₹4.4B).

Long Term Liabilities: 507880's short term assets (₹8.5B) exceed its long term liabilities (₹2.1B).


Debt to Equity History and Analysis

Debt Level: 507880's debt to equity ratio (12.6%) is considered satisfactory.

Reducing Debt: 507880's debt to equity ratio has increased from 9.1% to 12.6% over the past 5 years.

Debt Coverage: 507880's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 507880's interest payments on its debt are well covered by EBIT (18.4x coverage).


Balance Sheet

Inventory Level: 507880 has a high level of physical assets or inventory.

Debt Coverage by Assets: 507880's debt is covered by short term assets (assets are 10.9x debt).


Next Steps

Dividend

What is VIP Industries's current dividend yield, its reliability and sustainability?

1.14%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 19 2020Ex Dividend DateFeb 24 2020Dividend Pay DateMar 13 202018 days from Ex DividendBuy in the next 4 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: 507880's dividend (1.14%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 507880's dividend (1.14%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).


Stability and Growth of Payments

Stable Dividend: 507880's dividend payments have been volatile in the past 10 years.

Growing Dividend: 507880's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.7%), 507880's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 507880's dividends in 3 years are forecast to be well covered by earnings (29.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average board tenure


CEO

Sudip Ghose (46yo)

1.8yrs

Tenure

₹26,300,000

Compensation

Mr. Sudip Ghose has been Managing Director at VIP Industries Limited from April 1, 2019 and serves as its Additional Director since February 8, 2019. He had been the Chief Executive Officer at VIP Industri ...


CEO Compensation Analysis

Compensation vs Market: Sudip's total compensation ($USD367.53K) is about average for companies of similar size in the Indian market ($USD387.20K).

Compensation vs Earnings: Insufficient data to compare Sudip's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Sudip Ghose
MD & Additional Director1.8yrs₹26.30mno data
Radhika Piramal
Executive Vice Chairperson2.8yrs₹34.12m0.16% 100.3m
Dipak Poddar
Independent Non-Executive Director32.3yrs₹400.00kno data
Tushar Jani
Independent Non-Executive Director0.8yrsno datano data
Dilip Piramal
Non-Executive Chairman6.8yrs₹18.78m0.41% 263.2m
Nisaba Godrej
Independent Non-Executive Director0.8yrsno datano data
Amit Jatia
Independent Director4.8yrs₹200.00kno data
Ramesh Damani
Independent Non-Executive Director0.8yrsno data0.082% 52.5m

1.9yrs

Average Tenure

56yo

Average Age

Experienced Board: 507880's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

VIP Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VIP Industries Limited
  • Ticker: 507880
  • Exchange: BSE
  • Founded: 1968
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹63.685b
  • Shares outstanding: 141.32m
  • Website: https://www.vipindustries.co.in

Number of Employees


Location

  • VIP Industries Limited
  • DGP House, 88C
  • 5th Floor
  • Mumbai
  • Maharashtra
  • 400025
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
507880BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 2000
VIPINDNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2000

Biography

VIP Industries Limited manufactures and sells luggage bags and accessories in India. It offers hard and soft luggage, including ladies handbags, printed polycarbonate luggage products, soft uprights, vanity cases, hard suitcases, briefcases, trolleys, rucksacks, backpacks, duffel-bags, laptop bags, school bags, everyday travel accessories, and short haul products. The company provides its products primarily under the VIP, Caprese, Carlton, Skybags, Alfa, and Aristocrat brands. VIP Industries Limited sells its products through hypermarket and e-commerce channels, as well as company-owned and exclusive franchise stores. The company exports its products to 31 international locations, including the United Arab Emirates, the United States, Oman, and Bahrain. VIP Industries Limited was incorporated in 1968 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:47
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.