V-Guard Industries Ltd

V-Guard Industries Ltd, a Kochi-based company, is a leading manufacturer and marketer of voltage stabilizers. The company has a strong brand name and aggressively diversified to become a multi-product company catering to the Light Electricals sector manufacturing Voltage stabilizers, Digital UPS systems & Batteries, Pumps, House wiring cables, Switch gears, Modular switches, Electric water heaters, Fans, Solar water heaters, Air coolers and various Kitchen appliances. V-Guard outsources about 40% of its product profile while the rest are manufactured in – house while keeping a strong control in designs and quality. It has manufacturing facilities at Coimbatore (Tamil Nadu), Kashipur, Pantnagar&Haridwar (Uttarakhand), Kala Amb (Himachal Pradesh), Hyderabad (Telangana), Faridabad (Haryana) and Sikkim. V-Guard has been a dominant player in the South market, though the last ten years have also seen the company expanding rapidly in the non-South geographies with their contribution increasing from 5% of total revenues in FY08 to around 45% of total revenues in FY23. Significant investments continue to be made to expand its outlet coverage in the non-South geographies and become a dominant pan-India player. V-Guard has a diversified client base and an extensive marketing & distribution network. Its client base differs from product to product and includes direct marketing agents, distributors and retailers. The company today has a strong network of 32 branches which cover ~60,000+ channel partners across the country.V-Guard completed acquisition of 100% stake in Sunflame Enterprises Private Limited (Sunflame) on January 12, 2023 for a total consideration of ` 680.33 crore. Sunflame brand has a rich legacy in the Kitchen and Small Domestic Appliances industry and its portfolio includes chimneys, cooktops, cookers and other small appliances. Buy on declines for target price of Rs555 in medium term.