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    V-Guard stock jumps 9% on strong performance

    Synopsis

    V-guard Industries stock jumped 9% to Rs 496 today following the company announcement that the company achieved a turnover of over Rs 1,350 crores for the financial year ended March 31,2013, thereby registering a growth of more than 40%.

    MUMBAI: V-guard Industries stock jumped 9% to Rs 496 today following the company announcement that the company achieved a turnover of over Rs 1,350 crores for the financial year ended March 31,2013, thereby registering a growth of more than 40%. Besides this, the information shared with the exchange also mentioned that the sales from new markets outside south India also showed tremendous increase during the period.

    This is a huge positive for the company. Niket Shah, analyst with Motilal Oswal says that the company's long term growth will be driven by the non-south market. He futher added that the sales per distributor in the south is 7-8 crore, and in comparison to this it is only 2-3 crore per distributor in the non-south market which will grow to Rs 5-6 crore due to increased marketing.

    The company is mainly into products like stabilizer, UPS, digital UPS, pumps, fans, electric water heaters, induction cooktops and switchgears and sells its products in India and China. More than half of the manufacturing is outsourced, which helps company to remain asset light with lower working capital requirements.

    Because of such strong performance, the company's stock has gained 167% in the last one year. At the current market price, the company is trading at a P/E multiple of 20, which is low given the kind of growth and return ratios the company is generating.




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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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