VIP Industries Closed 20% After Q1 FY22 Results; Brokerages Up Targets

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VIP Industries Closed 20% After Q1 FY22 Results; Brokerages Up Targets

By Aditya Raghunath

Investing.com -- Ace investor Rakesh Jhunjhunwala might have sold off a large percentage of his holdings in VIP Industries Ltd (NS: VIPI ) but India’s largest baggage seller made a roaring return to form today. Its stock price closed up 20% at Rs 462.95, after it reported a profit for the first time in five quarters.

Net profit came in at Rs 2.53 crore in Q1 FY22 compared to a net loss of Rs 51.32 crore in Q1 FY21. Revenue from operations was up 411.43% to Rs 206.21 crore compared to Rs 40.32 in Q1FY21.

"The Q1FY22 revenue sequentially was impacted due to Covid-19. The revenue stood at 85% of last year March quarter at Rs 221 crore. Hard Luggage constituted 39% of total revenue for this quarter. Gross Margin was at 54% during the quarter, mainly due to lower discounts and better mix in favor of higher margin products and price increase," the company said in a statement.

The last 12 months saw the stock move from Rs 274.2 on August 13, 2020 to Rs 385.8 on August 11, 2021 before shooting up today. The stock has gained almost 69% in 12 months.

Brokerages have upped their targets on the stock. Edelweiss has a buy call on the stock with a target of Rs 486. Ambit Capital has a target of Rs 550 on the stock, revised from its earlier Rs 520.  

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