Our 5th company in the Series of Best Stocks to Buy in India for Short term 2021 is V Guard Industries Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
V-Guard Industries Limited is engaged in manufacturing, trading and selling of electronic and electrical products such as voltage stabilizers, uninterruptible power supply (UPS),PVC Cables, Pumps and Motors, Electric Water Heaters, Fans, Switchgears.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹10,759cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 53.58
Sector PE Ratio: 58.37
PE Ratio of this company is low but better than Sector’s PE. So it’s a Average PE than the peers of this company.
PB Ratio : 8.85
Sector PB Ratio : 4.46
PB Ratio of this company is high than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 0.48%
Sector Dividend Yield : 0.77%
Dividend Yield of this company is low than Sector. Dividend of this company is Below Average than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
You can see the company growth clearly in the above table, in 2019 Net profit was 167.24 Cr. only and in 2020, It increased to 187.11 Cr. and in 2021, it is increased to 200.82 Cr.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 658.97 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: V Guard debt to equity ratio (5.7%) is considered satisfactory.
Reducing Debt: V Guard debt to equity ratio has increased from 2.2% to 5.7% over the past 5 years.
Debt Coverage: V guard debt is well covered by operating cash flow (320.7%).
Interest Coverage: V Guard earns more interest than it pays, so coverage of interest payments is not a concern.
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing Promotors holding which is 56.05% in June 2021. FIIs invested in June 2021 with 14.53% and retail investor is 14.26%.
Now We’ll check the return of the company, This company started from Rs. 4.89 at 19 march 2008. This company given 50.27% returns in last 1 year from 2020 to 6 Sep 2021.
Investment Checklist for V Guard Industries Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 16.1% per year for the next 3 years
- Debt level is low and not considered a risk
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins improved or V Guard became profitable
- They have sufficient analyst coverage
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹29B)
- Market cap is meaningful (₹107B)
- V Guard does not have negative shareholders equity.
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Hope you liked Our 5th company in the Series of Best stocks to buy in India for short term 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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