⚠ 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: 3.6
| Stock Code | VGUARD | Market Cap | 15,089 Cr. | Current Price | 345 ₹ | High / Low | 413 ₹ |
| Stock P/E | 59.1 | Book Value | 47.5 ₹ | Dividend Yield | 0.44 % | ROCE | 17.2 % |
| ROE | 13.6 % | Face Value | 1.00 ₹ | DMA 50 | 331 ₹ | DMA 200 | 356 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | 0.46 % | PAT Qtr | 55.7 Cr. | PAT Prev Qtr | 66.0 Cr. |
| RSI | 64.7 | MACD | 1.22 | Volume | 2,34,726 | Avg Vol 1Wk | 5,40,603 |
| Low price | 298 ₹ | High price | 413 ₹ | PEG Ratio | 14.7 | Debt to equity | 0.03 |
| 52w Index | 41.0 % | Qtr Profit Var | 15.9 % | EPS | 5.55 ₹ | Industry PE | 48.5 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT declined from 66 Cr. to 55.7 Cr., showing short-term pressure despite 15.9% YoY growth.
- Margins & Returns: ROCE at 17.2% and ROE at 13.6% indicate moderate efficiency compared to peers.
- Debt Ratios: Debt-to-equity at 0.03 reflects negligible leverage and strong balance sheet health.
- Cash Flows: Low debt and consistent earnings suggest stable operating cash flows.
💹 Valuation Indicators
- P/E Ratio: 59.1 vs industry average of 48.5 → trades at a premium.
- P/B Ratio: Current Price / Book Value ≈ 7.3 → relatively high compared to intrinsic value.
- PEG Ratio: 14.7 → signals significant overvaluation relative to growth.
- Intrinsic Value: Current price (345 ₹) appears stretched compared to fundamentals.
🏢 Business Model & Competitive Advantage
- Strong presence in electrical appliances and consumer durables with diversified product portfolio.
- Brand recognition and distribution network provide competitive edge.
- Low debt enhances resilience and financial flexibility.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 310 ₹ – 330 ₹, closer to 50 DMA support.
- Long-Term Holding: Suitable for investors seeking defensive exposure, but staggered buying recommended due to premium valuation.
✅ Positive
- Low debt-to-equity ratio ensures financial safety.
- Strong brand presence in consumer durables.
- DII holdings increased (+0.46%), reflecting domestic institutional confidence.
⚠️ Limitation
- High P/E and PEG ratios indicate overvaluation.
- ROCE and ROE are moderate compared to industry leaders.
- FII holdings declined (-0.33%), showing cautious foreign sentiment.
📉 Company Negative News
- Quarterly PAT dropped from 66 Cr. to 55.7 Cr., showing earnings pressure.
- Trading below 200 DMA (356 ₹), indicating weak long-term momentum.
📈 Company Positive News
- Quarterly profit variation shows 15.9% YoY growth despite sequential decline.
- RSI at 64.7 and positive MACD (1.22) suggest near-term bullish momentum.
🏭 Industry
- Industry P/E at 48.5 indicates sector trades at lower multiples.
- Consumer durables sector benefits from rising demand and urbanization.
- VGUARD commands premium due to brand strength and distribution reach.
🔎 Conclusion
VGUARD demonstrates financial stability with low debt and strong brand presence, but trades at a significant premium compared to industry peers. Entry is advisable near 310 ₹ – 330 ₹ for long-term investors, with staggered accumulation to mitigate valuation risks. Overall, the company remains strategically positioned, though short-term earnings pressure and high valuation warrant caution.
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