⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
VGUARD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | VGUARD | Market Cap | 14,544 Cr. | Current Price | 333 ₹ | High / Low | 413 ₹ |
| Stock P/E | 56.9 | Book Value | 47.5 ₹ | Dividend Yield | 0.45 % | ROCE | 17.2 % |
| ROE | 13.6 % | Face Value | 1.00 ₹ | DMA 50 | 324 ₹ | DMA 200 | 347 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | 0.46 % | PAT Qtr | 55.7 Cr. | PAT Prev Qtr | 66.0 Cr. |
| RSI | 59.4 | MACD | -0.62 | Volume | 1,84,421 | Avg Vol 1Wk | 1,94,302 |
| Low price | 290 ₹ | High price | 413 ₹ | PEG Ratio | 14.2 | Debt to equity | 0.03 |
| 52w Index | 34.8 % | Qtr Profit Var | 15.9 % | EPS | 5.55 ₹ | Industry PE | 43.3 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined from 66 Cr. to 55.7 Cr., showing short-term earnings pressure. EPS at 5.55 ₹ remains modest.
- Margins & Returns: ROCE at 17.2% and ROE at 13.6% indicate moderate efficiency compared to peers.
- Debt: Debt-to-equity ratio of 0.03 reflects negligible leverage, ensuring financial stability.
- Cash Flow: Supported by low debt and consistent operations, though profitability trend is weakening.
💹 Valuation
- P/E Ratio: 56.9 vs Industry PE of 43.3 → Overvalued relative to sector.
- P/B Ratio: Current Price 333 ₹ vs Book Value 47.5 ₹ → High premium.
- PEG Ratio: 14.2 → Extremely expensive relative to growth.
- Intrinsic Value: Current price trades above fair value, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Strong brand presence in electrical appliances and consumer goods.
- Diversified product portfolio provides resilience against market cycles.
- Low debt ensures flexibility, but efficiency metrics are only moderate.
📈 Technicals & Entry Zone
- RSI at 59.4 → Slightly leaning toward overbought territory.
- MACD negative (-0.62) → Weak momentum, short-term caution advised.
- Entry Zone: Attractive accumulation between 300–315 ₹.
- Long-Term Holding: Suitable for cautious investors, but valuation risks are high.
✅ Positive
- Low debt-to-equity ratio ensures financial stability.
- Strong brand presence and diversified product portfolio.
- DII holdings increased by 0.46%, showing domestic institutional support.
⚠️ Limitation
- High P/E and PEG ratios suggest significant overvaluation.
- ROCE and ROE are moderate compared to industry leaders.
- Quarterly profit decline indicates short-term weakness.
📉 Company Negative News
- Quarterly PAT dropped from 66 Cr. to 55.7 Cr., reflecting earnings pressure.
- FII holdings decreased by 0.33%, showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased by 0.46%, reflecting domestic institutional support.
- 52-week performance up 34.8%, showing strong investor returns despite recent weakness.
🏭 Industry
- Industry PE at 43.3 suggests sector trades at lower multiples.
- VGUARD commands premium valuation due to brand strength, but efficiency metrics lag peers.
🔎 Conclusion
VGUARD shows resilience with low debt and a strong brand, but current valuations are stretched with a very high PEG ratio. Profitability has weakened in recent quarters, and efficiency metrics are moderate. Entry is favorable near 300–315 ₹ for long-term investors seeking stability, but caution is advised due to overvaluation and short-term momentum weakness.