VIP Industries Q2 Results Review - Short-term Troubles Continue; Maintain 'Hold': Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.VIP Industries Ltd. posted weak results in Q2 FY25, with revenue at Rs 544 crore, down 0.3% YoY. Gross margins contracted by 1,043 basis points to 45.1%, while Ebitda margins declined by 1,008 bps YoY to -0.4%. This was primarily due to subdued gross margin performance driven by an unfavourable mix and higher discounts, along with an increase in ad spend and overhead costs due to additional warehousing from high inventory levels. The company reported a net loss of Rs 33 crore..Although the company’s long-term strategy—focusing on premiumisation and improving operational efficiencies—remains intact, the execution of this strategy has a longer gestation period and will take time to yield significant results. Consequently, a "wait and watch" approach is maintained as we look for sustained signs of recovery in the company’s overall performance..We maintain our Hold rating on the stock and value the company at 30 times Dec-26 EPS with a revised target price of Rs 440/share..Click on the attachment to read the full report:.Pidilite Industries Q2 Results Review - Volume Growth To Remain High: Dolat Capital.DISCLAIMERThis 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.

VIP Industries Q2 Results Review - Short-term Troubles Continue; Maintain 'Hold': Axis Securities

The brokerage maintains a "wait and watch" approach on the company as it looks for sustained signs of recovery in overall performance.

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VIP Industries Q2 Results Review - Short-term Troubles Continue; Maintain 'Hold': Axis Securities

The brokerage maintains a "wait and watch" approach on the company as it looks for sustained signs of recovery in overall performance.

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