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Vip Ltd. Industry : Moulded Luggage

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Vip Ltd. Industry : Moulded Luggage
JV CAPITAL SERVICES PVT. LTD www.sharetrading.in VIP LTD. INDUSTRY : MOULDED LUGGAGE
NSE Symbol : VIPIND

CMP 115 RISK PROFILE: MEDIUM

BUY TARGET 210

Key Data :
52 week H/L : Market Cap (Rs Cr.) : Face Value : Beta : P/E : Div % : BV : PBV :
(Source : Company)

294/32 314 10 0.92 26 0.87 48.9 2.3

VIP Industries is engaged in the travel product business. The Company operates in two business segments: luggage & accessories and furniture. The products manufactured by the Company includes plastic moulded suitcase, plastic moulded briefcase and vanity case. The Company’s portfolio of brands includes V.I.P., Carlton, Delsey, Footloose, Alfa, Aristocrat and Skybags. The Company’s subsidiaries include Carlton Travel Goods Ltd. and Blow Plast Retail Ltd.

INVESTMENT RATIONALE
Despite the slowdown in the global trends of economy, the luggage markets performed flat. VIP Industries is the largest player in Indian luggage market. One of the large segment of Indian luggage market is the canteen Store Department (CSD). VIP luggage continues to enjoy a prominent position and is one of the most respected brands in CSD. Apart from the domestic market, the company also exports sizeable quantity of luggage to Europe & gulf and has presence in Africa & many other countries. With a view to expand and to access the international markets, the company during FY09 has set up a wholly owned subsidiary in UK. The company has also acquired the well known international luggage brand ‘CARLTON’. These developments are expected to augment export sales of the company significantly. The company has been focusing on creating exclusive outlets to increase market share.

Share Holding Pattern (%):
35.73 %

43.44 %

VALUATION:
12.90 % 0.97% 6.96%

Promoters DIIs Others

FIIs corporates

Relative Performance Analysis:

SENSEX VIP IND

We are cautiously optimistic for the moulded furniture segment of the company. In case of luggage segment the management of VIP is
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