Consumer Durables Industry – This sector has observed huge growth, as emphasized by the Indian Brand Equity Foundation (IBEF) report from December 2023. As per data provided by report, India’s Consumer Electronics and Appliances Sector will be 5the largest in world by 2025, with a forecasted market size of USD 17.93 billion in the same year. The development is supported by many factors, such as increase in disposable income, spending on non-essential items, growth in demand of rural areas, and Government schemes such as National Policy of Electronics 2019. The requirement of consumer electronics and electricals industry is inspired by factors such as power availability, consumer credit, weather patterns, and construction activity. Moreover, government reforms like GST and Make in India initiative is projected to bring transformation from unorganized to organized players in the market.
As per data provided by IBEF-Consumer durables, December 2023 report, there is huge growth in non-metro markets showing huge development and scope for new business centers. There is rising choice for premium consumer durable products specifically in urban areas. The trend is influenced by growth in discretionary income and simple financing schemes, which has minimized product replacement cycles and emerging lifecycles where consumer durables like ACs and LCDs are imagined as utility products instead of luxury products. The television segment is forecasted to reach Rs 1,227 billion by FY-22, with projected TV production in India rising to USD 10.22 billion by FY-26.
The Consumer Durables Industry has grabbed attention at world level with 100% FDI allowed in electronics hardware manufacturing. Furthermore, Consumer Durables sector is facing competition as both national and international players are working to attain top position in the market. To stay ahead of competition, companies are adopting modern technologies such as AI nd automation to manage smooth production process.
Government support and schemes play essential role in bringing development in Consumer Durables industry. Initiatives such as Ujala, Make in India, Atmanirbhar Bharat Abhiyaan, and Production Linked Scheme for white goods has a purpose of marketing domestic production and increasing growth. Moreover, the shared economy model is gaining popularity, by providing home appliances on rent in urban regions, encouraged by some businesses providing rental services. The aim is to develop energy efficiency is another important feature of sector’s growth. In this article, we will learn interesting information about V-Guard Industries’ Share Price Target, market cap, ROCE, ROE, promoter, shareholding pattern, headquarters, industry, revenue, and net-profit.
V-Guard Industries Ltd – Key Points
Name of the promoter
Mr. Mithun K. Chittilappilly
Industry
Consumer Durables
Established
1977
Headquarters
Kochi, Kerala
Employees
3000+
Channel partners
1,00,000+
V-Guard Industries Ltd – Statistics
Market cap
Rs 15,381 crores
ROCE
16.1%
ROE
13.8%
Stock PE
59.2
Book value
Rs 42.6
Face value
Rs. 1
About V-Guard Industries Ltd
The company started its operations in 1977, has 4 decades of experience and strong presence in the sector, well set infrastructure, showcasing example of of awareness, best talented people at all levels, strong R&D, and wide distribution channel and network of vendors. The huge legacy of unique improvement and best quality has encouraged to setup its presence in country with strong brand image, providing best quality products and services through huge distrubition channel and ASP network.
The company has made strong commitent for innovation and deliver best quality products, consistently improving its products that grab the attention of consumers with amazing experiences. The company is looking amazing opportunities to make investments to bring growth in future. The company gives priority by making investment in its employees. This includes developing talent, improving skills, and increasing interaction of workforce for secured, healthy, and equal working atmosphere. The company has attained expertise in business through its production skills, due to its modern manufacturing units with latest technologies which has made contribution of 65% of revenue in financial year 23-24. The company is trying its best to increase its manufacturing capabilities withe efforts placed around improving customer journey across all touchpoints online and offline.
The company has set manufacturing units strategically across country, the company continues its journey towards better diversification and market growth particularly in Non-South markets. The company is planning to grab best opportunities in future across business divisions, taking benefit of technology and data analytics to know consumer preference and behaviour, for best targeted marketing campaigns to develop strong brand image. Looking forward, the company is looking for huge growth and success.
The company’s strong cash flow generation and huge credit ratings highlights its financial strength and stability, developing strong base for future endeavours. The company recently setup manufacturing units in Hyderabad for Inverter Batteries and in Vapi for Kitchen Appliances, the company has forecasted to increase production in future. Furthermore, targeted schemes in Sunflame Enterprises Pvt. Ltd is projected to increase margins and scale its business. The company has made strong commitment to scale its business, the company is making huge efforts increase visibility and retail footprint. To fulfill these goals, the company targets annual capex of Rs 100 crore.
The company has unique strategy to add 3,000 to 4,000 new retailers annually, integrated with sales increment initiatives across different product segments. The total number of dealer-retailer touchpoints in FY-24 was 1 lakh. By increasing investment in promotion and marketing, alongwith supporting workforce, specifically in emerging product categories such as Consumer Durables it has strong purpose to build top position in market and take benefit of new opportunities in existing markets. The company is trying its best to emerge as India’s top brand, with trust and respect among various verticals. The company is working with consistent dedication to provide strong consumer satisfaction and bring sustainable, profitbale growth in business. The company remains consistent in its mission to deliver consistent value to its shareholders.
The manufacturing is main source to achieve benefits by developing competition. The modern manufacturing units is located across India plays key role in success. The company consistently modernise manufacturing facilities through technological improvements, automation and digitalization. The best quality manufacturing program is consistenly increasing best quality standards.
Business Segments
Electronics – The Electronics segment includes Voltage Stabilizers, Digital UPS systems, and Solar Power Systems. These divisions are dependent on availability and quality of power supply across country along with sales of consumer electronics such as refrigerators, TV, and ACs. Stabilizers and Digital UPS systems particlarly depend on season due to increasing demand during summer season.
Stabilizers – This segment is main for company as it attains top position in the market and competitors are basically regional players with very less distribution reach. The manufacturing unit is located in Sikkim and Pantnagar (The first factory setup under V-Guard Consumer Products Ltd.) fulfills various requirements of consumers including stabilizers customized for LED TVs, ACs, washing machines, treadmills, refrigerators. With rising consumption of consumer durables and existing under-penetration of white goods, this product segment is looking for sustainable growth in upcoming years.
Solar Power Systems – The company provides Solar Power Systems, both on-grid and off-grid, which remains parallel with Government of India’s drive against green energy. The Minister of Finance has given importance to install solar rooftop supporting 1 crore households to attain 300 units of free electricity per month. The company has attain good position by receiving benefits from increasing focus on solar rooftop with proper product offerings connecting with government schemes and grabs the attention of consumers taking benefits of these schemes which will led to growing demand and market share of the company.
Electricals – This segment includes wires, pumps, switchgears, and modular switches. This vertical is largest contributor in revenue of V-Guard. The requirement of this category is largely dependent on construction activity, water tables, weather conditions, and consumer spending patterns.
The wires segment is largest contributor in terms of revenue of company. The company manages its operations in Housing wire category where demand relies on electrification of houses and development in real-estate segment. The company has systematically setup manufacturing unit in Coimbatore (Tamil nadu) and Kashipur (Uttarakhand). The operations of business are interlinked with prices of copper, the basic raw material. This strong relation encourages dynamic inventory maintaining strategy of increase or reduce stock. In the initial years, the company has made huge investment in increasing production capacity in this segment and has enough to fulfill the requirements in upcoming years. The future in this segment is forecasted to grow, supported by huge expectations of increased construction activities in future.
Residential Pumps is another large category in this Electrical segment. The requirement of this segment is seasonal with summer season making impact on water table and generating sales. The Pumps segment is largely dominated by local and regional brands across the country where consumers are very less aware and are dependent on retail shops or plumbers while making buying decisions.
Switches and Switchgears – These segments are main preference for growth of company. This segment receives benefits from wires business which supports to receive growth smoothly. In FY-23, the company acquired and merged Simon Electric Pvt. Ltd (SEPL), a subsidiary of worldwide conglomerate Simon group with its headquarters located in Spain. In FY-24, SEPL had smoothly stepped into V-Guard’s business operations with backend processes connected and entire team became part of V-Guard.
Fans – This segment of company offers various types of products including ceiling, pedestal, table, and wall fans. The company pays attention on introducing new products, the brand remains ahead in offering stylish, operational, and modern solutions.
Water heater – The company has attained top position in this segment by providing solar, electric water heaters, and heat pumps. The company has broad variety of products portfolio from economy range to high cost electric water heater. The company is a top player in solar water heaters and delivers products for residential and commercial purpose.
Air coolers – This segment provides wide range of products including window fitted, personal and room coolers, desert coolers. The company pays attention on offering effective and cooling solutions at reasonable price for homes and office, this category provides amazing growth for V-Guard. The company makes consistent investment in this segment by launching new models and designs every year and provides huge capital to scale the market of air coolers in across nation.
Kitchen appliances – This segment includes gas cooktops, mixer grinder, water purifiers, rice cookers, and breakfast appliances. The manufacturing unit of Mixer Grinders and Gas Stoves is located in Vapi under its wholly owned subsidiary V-Guard Consumer Products Limited (VPCL) began commercial production.
Revenue and net profit
Particulars
FY-24 (Rs. in crores)
Sales
4,559
Expenses
4,205
EBITDA
354
Other income
51
Interest
37
Depreciation
67
Profit before tax
301
-Tax (%)
(23%)
Net profit
231
EPS in Rs.
5.32
Balance Sheet
Liabilities
Rs
Assets
Rs
Equity Capital
43
Fixed Assets
435
Reserves
1,725
CWIP
36
Borrowings
356
Investments
919
Other Liabilities
762
Other assets
1,496
Total Liabilities
2,886
Total assets
2,886
Shareholding Pattern
Promoters
54.36%
FIIs
13.72%
DIIs
20.25%
Public
11.69%
V-Guard Industries Ltd – Watch full Video
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V-Guard Industries Ltd Share Price Target – 2025 to 2040
Year
Minimum price (Rs)
Average price (Rs)
Maximum price (Rs)
2025
356
376
396
2026
403
434
465
2027
470
509
548
2028
555
605
655
2029
660
697
734
2030
740
802
864
2035
1480
1522
1564
2040
2825
3020
3214
V-Guard Industries Ltd Share Price Target – 2025
If market observes downward sentiments, the minimum projected price is estimated to reach Rs 356. The average trading price is projected to hit Rs 376 at the mid of the year. If market observes bullish sentiments, the maximum predicted price is projected to touch Rs 396. At present, the company sells water purifiers through e-commerce channel. This segment has shown good growth, by taking benefit of best quality products and competitive price with V-Guard brand. The company is planning to rebuild its product basket by collecting feedback from genuine channels and consumer base and scaling into organised retail chain.
V-Guard Industries Ltd Share Price Target – 2026
If market faces downward sentiments, the minimum forecasted price is estimated to reach Rs 403. The average trading price is projected to reach Rs 434 at the mid of the year. If market observes bullish signals, the maximum projected price is anticipated to reach Rs 465. The company has smoothly shifted to BEE-rated ceiling fans last year, by launching star rated fans including BLDC models which provide significant savings in electricity expenses of customers. The manufacturing unit of ceiling fans is located at Roorkee by paying attention on premium products. The company is looking for further expansion in fan category by increasing demand of best quality products.
V-Guard Industries Ltd Share Price Target – 2027
If market observes downward sentiments, the minimum projected price is anticipated to reach Rs 470. The average trading price is projected to reach Rs 509 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to reach Rs 548. The company has minimzed reliability on imports for TPW models in past few years by building required vendor base by minimizing risks connected with supply disruptions. The company is going to establsihed own TPW fans in Hyderabad which will produce best quality fans.
V-Guard Industries Ltd Share Price Target – 2028
If market observes downward sentiments, the minimum forecasted price is estimated to reach Rs 555. The average trading price is projected to hit Rs 605 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to reach Rs 655. The company has acquired 100% stake in Sunflame Enterprises Private Limited on 12th January, 2023 with total amount of Rs 680 crores. The company has huge legacy in Kitchen and Small Domestic Appliances sector and its product basket includes Cookware, Chimneys, Induction Cooktops, Hobs, Gas Cooktops. Sunflame is presently concentrating to improve its footprint in e-commerce, Regional Speciality Stores (RSS), Modern Trade (MT).
V-Guard Industries Ltd Share Price Target – 2029
If market observes bearish sentiments, the minimum projected price is anticipated to reach Rs 660. The average trading price is projected to reach Rs 697 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is expected to reach Rs 734. The company has consistently increased its production unit in last decade and in previous financial year, the company has setup manufacturing plant in Vapi for Mixer Grinder and Stoves. The company has also started operations of modern Vitreous Enamel Tank manufacturing plant at Solar water heater plant to increase dependency of product and longevity.
V-Guard Industries Ltd Share Price Target – 2030
If market observes downward sentiments, the minimum forecasted price is anticipated to reach Rs 740. The average trading price is projected to hit Rs 802 at the mid of the year. If market observes bullish sentiments, the maximum projected price is expected to touch Rs 864. The focus of company remained on scaling secondary market across al regions. The company specifically targeted non-south regions and Tier-2 and Tier-3 towns. With coming new channels, e-commerce consistently in segments like kitchen appliances and consumer electric appliances. The company consistently rebuilds the commerce operating model among main e-commerce platforms.
V-Guard Industries Ltd Share Price Target – 2035
If market observes downward sentiments, the minimum projected price is expected to reach Rs 1480. The average trading price is projected to hit Rs 1522 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is estimated to reach Rs 1564. The company conducted several programmes to assure more cost-efficient and smooth the operations of raw material purchasing which resulted in minimized costs and develop strong relationships with relationships. The company executed strong supplier code of conduct that all Tier-1 vendors are required to sign to assure strict follow of rules and genuine practices across supply chain.
V-Guard Industries Ltd Share Price Target – 2040
If market observes downward sentiments, the minimum projected price is anticipated to reach Rs 2825. The average trading price is forecasted to reach Rs 3020 at the mid of the year. If market faces bullish sentiments, the maximum forecasted price is expected to reach Rs 3214. The company has made huge investment in Gegadyne Energy labs Private Limited (GEL) which is unique energy storage startup in substitute battery technology, headquarters located in Mumbai. It gives importance to building energy storage solutions to improve battery performance across various paramters such as lifecycle, safety of battery, cost of ownership, minimized charging time, and low costs of maintenance.
FAQs
Q1) Who is the owner of V-Guard Industries Ltd?
Ans – The owner of V-Guard Industries Ltd is Mr. Kochouseph Chittilappilly.
Q2) What is the turnover of V-Guard Industries Ltd?
Ans – The turnover of V-Guard Industries Ltd in FY-13 was Rs 1,353 crores which has increased to Rs 4,559 crores in FY-24.
Q3) What are the products of V-Guard Industries Ltd?
Ans – The products of V-Guard Industries Ltd are: Fans, Wires & Cables, Kitchen appliances, Pumps, Kitchen appliances, Solar power system, geysers, stabilizers.
Q4) How old is V-Guard company?
Ans – The company was founded in 1977 as V-Guard Industries is Indian company with strong brand image. The company is 4 decades old.
Q5) What is networth of V-Guard Industries Ltd?
Ans – The networth of V-Guard Industries Ltd is Rs 19.74 billion in net assets.
Q6) Is V-Guard Industries Ltd a debt-free company?
Ans – No, V-Guard Industries Ltd is not a debt-free company. The Long-term borrowings of company is Rs 22 crores and short-term borrowings is Rs 124 crores.
Q7) Is V-Guard Industries Ltd a good stock to buy?
Ans –Yes,V-Guard Industries Ltd is a good stock to buy only for long-term purposes. The net-profit of company in FY-13 was Rs 63 crores which has increased to Rs 231 crores in FY-24 in past 10 years. The share price of company in 2008 was Rs 8, which has increased to Rs 356 in FY-25, generating returns of 7022% in past 17 years.
