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.

VIP Industries reports net profit after three consecutive quarters in red

Quarters	Revenue	Profit
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.


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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