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Mid Cap Dividend Stock Rises 27% In 1-Yr, ICICI Direct Sees Further Upside Of 18%, Buy
ICICI Direct has assigned buy call to leading mid cap Plastic sector stock, VIP Industries Ltd with a target price of Rs 840 apiece. The company recently declared 2nd interim dividend as well on January 25, 2023 and fixed February 2, 2023 as the record date. The stock rallied 27% in last 1-year and ICICI Direct sees yet another upside of 18% in VIP Industries shares. Check details pertaining to the stock:
1. VIP Industries Declares Record Date For Interim Dividend
The Board of Directors declared 2nd Interim Dividend of Rs. 2/- (Rupees Two) per equity share of face value of Rs. 2/- each for the Financial Year 2022-23 (100%). The 2nd Interim Dividend for the Financial Year 2022-23 shall be paid on or after 14th February, 2023. The company has fixed Thursday, 2nd February, 2023 as the "record date" for the purpose of ascertaining the eligibility of shareholders for payment of 2nd Interim Dividend.
2. VIP Industries Stock Performance & Return
The last trading price of the stock is Rs 712.70 apiece with an intraday gain of over 1%. The stock's 52-week high is Rs 774.50 apiece and 52-week low is Rs 506.00 apiece, respectively. The company has a market capitalisation of Rs 10,093.18 crore.
The stock rallied 6% in last 1-month, 18% in last 6-months, and 27% in last 1-year. It gave return of 56% in last 3-year and 111% in last 5-year.
3. Valuation
According to ICICI Direct, "VIP's share price has grown by ~2.0x over the past five years (from ~Rs 350 in January 2018 to ~Rs 700 levels in January 2023). Luggage being a proxy play to the travel & tourism industry was among the worst impacted sectors owing to pandemic in FY21, FY22. With demand greenshoots visible, we expect VIP Industries to be a key beneficiary of increased movement of leisure and business tourist both domestically and internationally. We maintain BUY recommendation on the stock. We value VIP at Rs 840 i.e. 48x FY24E EPS."
4. About VIP Industries
VIP Industries is one of Asia's leading seller/manufacturer of various type of luggage, backpacks and handbags. VIP has a range of leading brands, positioned across the entire price range, catering to value (Aristocrat) mid (VIP, Skybags) and premium (Carlton, Caprese) price points.
VIP has, over the years, maintained balance sheet prudence with stringent working capital policy, virtually debt free status and healthy RoCE: 30%+.
Disclaimer
The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.
