Shares of V-Guard Industries were quoted at Rs 232.85 each on Monday at market close, rising 2.71 percent. The stock has been gaining for the last 5 days and has risen 8.58 percent in the period. The stock has traded higher than 5 day, 20 day, 50 day, 100 day and 200 day moving average.
On Monday, the stock outperformed the sector by more than 2 percent. During the day, it touched an intra-day high of Rs 234.45, surging 3.42 percent.
The stock spurted after SPA Securities in its research report dated on December 17 adopted a bullish stance, recommending a “buy” rating on the stock with a target price of Rs 248.
In its report, the brokerage firm said V-Guard’s revenue base is very well diversified. While stabilisers comprise 19 percent of the revenue base, UPS comprises 12 percent, Cables & Wires at 30 percent, pumps at 12 percent, water heaters at 12 percent and fans at 10 percent.
Moreover, revenues are growing consistently at 15 percent annually, the report said. In FY19, revenue growth slipped to 10 percent at Rs 1,232 crore due to Kerala floods as the state contributes as high as 25 percent of the company’s revenue, the report further added.
V-Guard last year entered air coolers business on pilot basis and has plans to launch the same pan-India in current year, SPA Securities said in its research report.
First Published: IST