Multi Baggers
Vaibhav Global
BSE ID : 532156 NSE ID : VAIBHAVGBL
RECOMMENDED PRICE 288.45
PEAK FROM RECO 1057.70 266.68%
CURRENT PRICE 405.15 Resource id #11
Multibagger Follow-up: In our report dated August 24th, 2013, we had initiated Buy recommendation in Vaibhav Global at Rs 176 and achieved our previous target of Rs 240. We are upgrading our price target to Rs 400 in the medium to long term investment horizon.
Vaibhav Global
Multibagger Follow-up: In our report dated August 24th, 2013, we had initiated Buy recommendation in Vaibhav Global at Rs 176 and achieved our previous target of Rs 240. We are upgrading our price target to Rs 400 in the medium to long term investment horizon.
Stellar quarterly numbers posted by company makes the case for revision in our target price. We initiated Buy on stock at Rs 176 and achieved our previous target of Rs 240 .Currently at a CMP of Rs 288.45, company trades at 8.48x of FY14E EPS of Rs 33.98 & 7.25x of FY15E EPS of Rs 39.80. We are upgrading our price target to Rs 400 in the medium to long term investment horizon.
Company has posted growth of more than 300% in its bottomline at Rs 43.96 cr in Q2FY'14 which stood at Rs 6.91 cr in Q2FY13 .Also total debt (short term & long term borrowings) of company reduced to Rs 127.28 Cr as on 30th Sept'13 from Rs 143.18 cr as on 31st March'13.The Operating profit margin of company stood at 12.61%in Q2FY'14 from 6%in Q2FY'13 while Net Profit Margin of company stood at 13.67%in Q2FY'14 from 3.11% in Q2FY'13.
With over 1.2M registered customers, and approximately 350K-500K unique customers shopping with company , company is constantly adding 250K-350K new customers in any year . Currently, company is attracting upto 500K monthly unique visitors on its web portals.
Co is constantly increasing its product portfolio which consists of 65000 designs. Company is seeing increasing growth within Jewelry related accessories segment of its business, Gem Stone studded steel jewelry, Sun Glasses, Mens Jewelry & Mens Wallets. Additionally Hand bags, Hair Accessories, Scarves and Watch segments of company have seen expanded offerings.
VGL is the only company that offers a unique integrated discount business model within the Home shopping space. Co's average price points are significantly different as well as very low and its value proposition is very high. Co has direct sourcing ability in deep micro markets and thereby company has the opportunity to retain superior margins even with its lower price points. Co's customer repeat and retention ratio's are some of the highest in the industry and its group wide operating costs is uniquely low. Company has international peers like QVC & HSN Inc.
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Disclaimer & Disclosure: This document is prepared for our clients only, on the basis of publicly available information and other sources believed to be reliable. Whilst we are not soliciting any action based on this information, all care has been taken to ensure that the facts are accurate, fair and reasonable. This information is not intended as an offer or solicitation for the purchase or sell of any financial instrument and at any point should not be considered as an investment advice. Reader is requested to rely on his own decision and may take independent professional advice before investing. Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited, Directors and any of its employees shall not be responsible for the content. The person accessing this information specifically agrees to exempt Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees from, any and all responsibility/liability arising from such misuse and further agrees to hold Hem Securities Limited, Hem Finlease Private Limited, Hem Multi Commodities Pvt. Limited or any of its affiliates or employees free and harmless from all losses, costs, damages, expenses that may be suffered by the person accessing this information due to any errors and delays. The companies and its affiliates, officers, directors, and employees, including persons involved in the preparation or issuance of this material may from time to time, have long or short positions in, and buy or sell the securities there of, company (ies) mentioned herein and the same have acted upon or used the information prior to, or immediately following the publication. Analyst Certification The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
HemSec_VaibhavGlobal_Multibagger.pdf
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