Rs 118 to Rs 584: This stock turned into a multibagger in five years
An investment of Rs 1 lakh in the mid cap stock five years ago would have grown to Rs 4.92 lakh in the last session.
- Dec 17, 2021,
- Updated Dec 18, 2021 8:22 PM IST
Share of VIP Industries has delivered stellar returns to investors in the last five years. VIP Industries stock which closed at Rs 118.76 on December 16, 2016 ended at 584.45 on December 16, 2021, translating into gains of over 395% during the period.
In comparison, Sensex climbed 116% during the period. An investment of Rs 1 lakh in the share five years ago would have grown to Rs 4.92 lakh in the last session.
However, the midcap share ended 4.08% lower at Rs 560 today. The stock touched an intraday low of Rs 558.3, down 4.47% on BSE.
Also read: Rs 0.35 to Rs 150: This penny stock turned into a multibagger in 2.5 years
VIP Industries share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Market cap of the firm fell to Rs 7,928 crore. Total 0.36 lakh shares of the firm changed hands amounting to a turnover of Rs 2.09 crore on BSE.
The share has gained 57.2% in one year and risen 57.25% since the beginning of this year. It hit a 52-week high of Rs 668 on September 9, 2021 and a 52-week low of Rs 309 on April 19, 2021.
11 promoters held 50.28 per cent stake in the firm and 1,18,081 public shareholders owned 49.72 per cent stake at the end of September quarter. 1,11,821 public shareholders with individual capital up to Rs 2 lakh owned 14.89% stake or 2.10 crore shares of the firm.
Also read: Rs 62 to Rs 716: This stock turned into a multibagger in one year
Nine shareholders with 1.60% stake held capital above Rs 2 lakh at the end of September quarter. 20 mutual funds owned 16.47% stake in the firm at the end of September quarter. 63 foreign investors held 4.39% stake or 62.13 lakh shares in the firm.
Also read: Rs 22 to Rs 499: This stock turned into a multibagger in one year
The firm is marginally ahead of its only listed peer in terms of stock market returns during the last five years.
The share of Safari Industries has gained 375% against 395% returns by VIP Industries during the period.
The rally in the stock is not fully in line with the earnings performance of the firm.
Profit in the September quarter rose 152% to Rs 18.54 crore against Rs 35.39 crore loss in the corresponding period of last fiscal. Sales climbed 221% to Rs 330.06 crore in Q2 against Rs 102.75 crore sales in the corresponding quarter of last fiscal.
The firm reported a loss of Rs 97.49 crore in fiscal ended March 2021 against a profit of Rs 111.73 crore for fiscal ended March 2020. Sales plunged 63.92% to Rs 618.56 crore in the last fiscal against sales of Rs 1,714 crore for fiscal ended March 2020.
Also read: Rs 21 to Rs 343: This stock turned into a multibagger in three months
On the other hand, profit had steadily risen to Rs 145 crore in March 2019 fiscal from Rs 66.46 crore for the fiscal ended March 2016.
Sales too rose steadily from Rs 1,213 crore in March 2016 fiscal to Rs 1,784 crore in March 2019 fiscal. In the very next fiscal, sales fell to Rs 1,714 crore.
Post an interaction with management of the firm in November end, brokerage Prabhudas Lilladhar retained its BUY call on the stock and raised its target price to Rs 726 against the previous target of Rs 621.
"We increase our target P/E multiple to 40x (35x earlier) as 1) Samsonite's Oct-21 sales (acts as a lead indicator for 3Q performance) was just 29% lower than the comparable pre-COVID month (Oct-2019) indicating sharp demand recovery from 2nd wave and 2) long-term margin expansion is on the cards as share of own manufacturing is expected to rise to 60% (40% currently) post capacity expansion," the brokerage said in a report.
VIP Industries is a holding company engaged in the manufacturing of hard luggages and soft luggages. The firm operates through two segments: Luggage, bags and accessories, and furniture. The company has manufacturing facilities at various locations across India.
The company has a range of brands across luggage categories. The company's brands include Carlton, VIP Bags, Skybags, Aristocrat, Alfa and Caprese.
Also read: Rs 350 to Rs 1233: This multibagger stock zoomed over 250% in one year. Do you own it?
Share of VIP Industries has delivered stellar returns to investors in the last five years. VIP Industries stock which closed at Rs 118.76 on December 16, 2016 ended at 584.45 on December 16, 2021, translating into gains of over 395% during the period.
In comparison, Sensex climbed 116% during the period. An investment of Rs 1 lakh in the share five years ago would have grown to Rs 4.92 lakh in the last session.
However, the midcap share ended 4.08% lower at Rs 560 today. The stock touched an intraday low of Rs 558.3, down 4.47% on BSE.
Also read: Rs 0.35 to Rs 150: This penny stock turned into a multibagger in 2.5 years
VIP Industries share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Market cap of the firm fell to Rs 7,928 crore. Total 0.36 lakh shares of the firm changed hands amounting to a turnover of Rs 2.09 crore on BSE.
The share has gained 57.2% in one year and risen 57.25% since the beginning of this year. It hit a 52-week high of Rs 668 on September 9, 2021 and a 52-week low of Rs 309 on April 19, 2021.
11 promoters held 50.28 per cent stake in the firm and 1,18,081 public shareholders owned 49.72 per cent stake at the end of September quarter. 1,11,821 public shareholders with individual capital up to Rs 2 lakh owned 14.89% stake or 2.10 crore shares of the firm.
Also read: Rs 62 to Rs 716: This stock turned into a multibagger in one year
Nine shareholders with 1.60% stake held capital above Rs 2 lakh at the end of September quarter. 20 mutual funds owned 16.47% stake in the firm at the end of September quarter. 63 foreign investors held 4.39% stake or 62.13 lakh shares in the firm.
Also read: Rs 22 to Rs 499: This stock turned into a multibagger in one year
The firm is marginally ahead of its only listed peer in terms of stock market returns during the last five years.
The share of Safari Industries has gained 375% against 395% returns by VIP Industries during the period.
The rally in the stock is not fully in line with the earnings performance of the firm.
Profit in the September quarter rose 152% to Rs 18.54 crore against Rs 35.39 crore loss in the corresponding period of last fiscal. Sales climbed 221% to Rs 330.06 crore in Q2 against Rs 102.75 crore sales in the corresponding quarter of last fiscal.
The firm reported a loss of Rs 97.49 crore in fiscal ended March 2021 against a profit of Rs 111.73 crore for fiscal ended March 2020. Sales plunged 63.92% to Rs 618.56 crore in the last fiscal against sales of Rs 1,714 crore for fiscal ended March 2020.
Also read: Rs 21 to Rs 343: This stock turned into a multibagger in three months
On the other hand, profit had steadily risen to Rs 145 crore in March 2019 fiscal from Rs 66.46 crore for the fiscal ended March 2016.
Sales too rose steadily from Rs 1,213 crore in March 2016 fiscal to Rs 1,784 crore in March 2019 fiscal. In the very next fiscal, sales fell to Rs 1,714 crore.
Post an interaction with management of the firm in November end, brokerage Prabhudas Lilladhar retained its BUY call on the stock and raised its target price to Rs 726 against the previous target of Rs 621.
"We increase our target P/E multiple to 40x (35x earlier) as 1) Samsonite's Oct-21 sales (acts as a lead indicator for 3Q performance) was just 29% lower than the comparable pre-COVID month (Oct-2019) indicating sharp demand recovery from 2nd wave and 2) long-term margin expansion is on the cards as share of own manufacturing is expected to rise to 60% (40% currently) post capacity expansion," the brokerage said in a report.
VIP Industries is a holding company engaged in the manufacturing of hard luggages and soft luggages. The firm operates through two segments: Luggage, bags and accessories, and furniture. The company has manufacturing facilities at various locations across India.
The company has a range of brands across luggage categories. The company's brands include Carlton, VIP Bags, Skybags, Aristocrat, Alfa and Caprese.
Also read: Rs 350 to Rs 1233: This multibagger stock zoomed over 250% in one year. Do you own it?