VIP Industries wakes up from a long slumber to reach an 18-month high

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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.
Shares 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.

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VIP Industries reports net profit after three consecutive quarters in red

QuartersRevenueProfit
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
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.

The company has already breached the target price and stood at ₹463.30 at 3:15 p.m., on August 12.

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VIP Industries wakes up from a long slumber to reach an 18-month high
Flourish/BSE data

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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