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This stock in Rakesh Jhunjhunwala's portfolio zooms 200% in one year

VIP Industries hit a new high of Rs 538, rallying 200% in past one year from Rs 179 on August 2, 2017 as compared to 15% rise in the S&P BSE Sensex.

SI Reporter  |  Mumbai 

VIP Industries, which was set up in 1971, has four factories that together produce nearly five million pieces annually
VIP Industries, which was set up in 1971, has four factories that together produce nearly five million pieces annually

Shares of have moved higher by 10% to Rs 538 per share, also their record high on the BSE, after the company reported a strong 55% year on year (yoy) jump in its consolidated net profit at Rs 634 million in June quarter (Q1FY19). The company, which is engaged in manufacturing and marketing of and bags, had a profit of Rs 410 million in the same quarter year ago.

Revenue from operations during the quarter under review increased 27% at Rs 5.18 billion against Rs 4.07 billion in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved around 350 bps at 18.58% from 15.07%.

in annual report said that though there was a bit of uncertainty due to GST during last year, the government has heeded the concerns of the industry and settled the GST rate at 18%. It will benefit entire and industry and consumers.

“VIP is likely to record strong volume growth in the space, and growth in brands like VIP would help safeguard gross margins to a certain extent. Besides, we feel the current scale of business would protect profitability during volatile times,” analysts at Equirus said in recent report.

In past one year, has outperformed the market by surging 200% from Rs 179 on August 2, 2017 as compared to 15% rise in the S&P

Ace investor holds 5.21 million equity shares or 3.69% stake in VIP Industries as of June 30, 2018, the shareholding pattern data shows. These shares valued at Rs 2.78 billion based on current market price.

At 02:07 PM; VIP Industries was trading 9% higher at Rs 535 on the BSE, as compared to nearly 1% rise in the S&P The trading volumes on the counter jumped five-fold with a combined 5.49 million equity shares changed hands on the and so far.


First Published: Fri, August 03 2018. 14:11 IST
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