VIP Industries wakes up from a long slumber to reach an 18-month high
- Shares of VIP Industries surged to one-year high as the company reported net profit after four consecutive quarters of loss.
- The company reported a profit of ₹2.53 crore in June quarter as compared to a loss of ₹3.78 crore in the previous quarter.
- Analysts at Prabhudas Lilladher have upgraded their rating on the company’s stock to ‘buy’ after the financial results.
AdvertisementShares of luggage and travel accessories manufacturer VIP Industries ended 20% higher on Thursday, as investors celebrated the company’s profit announcement in June quarter after four consecutive quarters of loss.
The company reported a net profit of ₹2.53 crore in June quarter as compared to a loss of ₹3.78 crore in the previous quarter.
The market capitalisation of the company stood at ₹6,547 crore after market closed on August 12.
VIP Industries reports net profit after three consecutive quarters in red
Analysts were also impressed with the company’s performance as brokerage firm Prabhudas Lilladher upgraded the company’s stock rating to ‘buy’ from ‘under review’ with a target price of ₹457.
|Q2FY21||₹107.8 crore||-₹35.3 crore|
|Q3FY21||₹242.8 crore||-₹7 crore|
|Q4FY21||₹259.3 crore||-₹3.78 crore|
|Q1FY22||₹220.58 crore||₹2.53 crore|
The company has already breached the target price and stood at ₹463.30 at 3:15 p.m., on August 12.
Demand recovery post second wave is significantly better than expectations despite lockdown-like restrictions, added the brokerage report.
The company did not make profits in the last few quarters as demand for travel accessories were muted due to travel restrictions worldwide.
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