VIP Industries Q3 Results Review - Unveils A New Strategy To Revive Business: Prabhudas Lilladher

Prabhudas Lilladher Report

We cut our FY25E/FY26E earning per share estimates for VIP Industries Ltd. by 13%/12% as we re-align our cost assumptions on freight, warehousing and advertising and promotion spends. While handling and warehousing charges are expected to increase amid inventory pile up, A&P cost will increase due to accelerated spends on e-com channel.

As VIP has been facing considerable growth challenges, a new plan has been unveiled that would focus on product innovation (37 new launches in pipeline), premiumization, leadership (60% of the middle level team is new) and supply chain management to revive the business.

Though the revival strategy focusses on key concerns, we would like to witness some green shoots before we turn constructive again, as VIP has been facing twin challenges of market share loss and deterioration in margins.

We expect sales/Ebitda compound annual growth rate of 10%/11% and retain ‘Hold’ on the stock with target price of Rs 589 (earlier Rs 674) valuing it at 38 times September 2025 EPS (no change in target multiple).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.