VGuard Industries Ltd Research Report

Company Overview

VGuard Industries Ltd (VGRD) is a leading player in the electrical and consumer appliance market, with key product segments including stabilizers, cables & wires, UPS systems, pumps, and a range of appliances.

Q3FY26 Performance

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Revenue increased 11% year-over-year (YoY), driven by strong 26% YoY growth in the electricals segment, supported by higher volumes and a rise in copper prices. Other segments remained largely flat. Gross margin moderated to 35.9% (down 22 bps YoY), impacted by an adverse product mix and delays in passing on higher input costs.

Key Metrics

• Revenues: Rs. [insert revenue figure]
• Gross Margin: 35.9% (down 22 bps YoY)
• EBITDA Margin: 8.8% (down 60 bps YoY)
• Adjusted PAT (excluding one-off provisions): grew 31.5% YoY

Outlook

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We project earnings growth of 24% over FY26E–28E, driven by price hikes, seasonal volume recovery, and improving electricals momentum. We roll forward to FY28E EPS and value VGRD at 35x P/E, a 10% discount to its long-term average to reflect near-term margin and integration volatility.

Recommendation

We upgrade VGRD to a Buy rating with a revised target price of Rs.392.