V-Guard Industries has surged 8 per cent to Rs 208 on the NSE during the early morning trade in an otherwise weak market after the board recommended the issue of bonus shares in the ratio of 2:5 (two shares for every five shares held). The company is involved in consumer electrical and electronics business has registered 30 per cent year on year (Y-o-Y) jump in net profit at Rs 28 crore for the quarter ended December 2016 (Q3FY17). Net revenue rose 10 per cent at Rs 460 crore on Y-o-Y basis.
As per Mithun K.Chittilappilly, Managing Director, V-Guard Industries Ltd, the company would perform reasonably well in a market conditions which was impacted by different economic decisions. Demonetisation had some effect on some product segment and sales growth of some of the products had come down from the previous quarters.
But, the company has pro-actively incorporated different facilities including arranging finance through NBFC and installing card machines, cash discount facilities to channel partners. The sales in Tamil Nadu region was impacted because of the socio-economic situation prevalent in the State and because of cyclone affecting many parts of Chennai and suburban areas.
The business outlook, he said, stays positive considering the upcoming summer season. A new manufacturing unit at Sikkim is being initiated with an investment outlay of Rs. 12.50 crore for increasing the capacity of stabilizer and the unit is expected to commence commercial production in March 2017. Besides, the manufacturing unit for electric water heater with an investment of Rs. 25 crore would also commence commercial production at Sikkim next year.
At 09:32 am; V Guard share price was up 6 per cent at Rs 204 on the NSE as compared to 0.47 per cent decline in the S&P BSE Sensex. At 10.30am, the stock is trading above 5 per cent at Rs. 204.55. Till now around 10,45,754 shares are traded on the counter with a traded value of Rs 2,140.14 lacs, as per NSE.
V Guard is one of the top 500 performing stocks for this quarter as identified by Dynamic Levels.For further details on the stock, refer to V Guard share price history.
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