V-Guard Industri (VGUARD)

FairStock Score: 57/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Low leverage: Debt/Equity of 0.07 and strong liquidity indicators like Altman Z-score of 5.58 and Piotroski F-score of 8/9.
• Strong historical revenue traction: 5-year revenue CAGR of 15.44% in household appliances.
• Healthy free cash flow of ₹380 Cr and promoter holding of 53.28%.
• Reasonable capital efficiency with ROCE of 17.23%.

Concerns

• Very rich valuation: P/E of 53.55, P/B of 7.30, EV/EBITDA of 38.36 and PEG of 52.13.
• Latest profit growth of -9.77% and sales growth of only 5.62% show momentum slowing.
• Price is far above DCF value of ₹237.33 and Graham Number of ₹75.86, leaving margin of safety at -312.87%.
• ROE of 12.11% is modest for a 7.30 P/B, while dividend yield is just 0.48%.

AI Analysis

V-Guard is the kind of business that could interest me at a different price. Five-year revenue CAGR of 15.44% shows a company that has grown impressively in household appliances. The balance sheet is conservative: debt/equity is only 0.07, free cash flow is ₹380 crore, and the Altman Z-score of 5.58 with Piotroski F-score of 8/9 point to financial strength. Promoter holding of 53.28% is a good sign. But Graham taught that the price is what you pay, value is what you get. At ₹333.75, the market caps V-Guard at ₹13,679 crore. For that, I get a business whose latest sales growth was just 5.62% and profit growth was minus 9.77%. The P/E of 53.55, P/B of 7.30 and EV/EBITDA of 38.36 are far too rich. A return on equity of only 12.11% does not justify seven times book value. Even the DCF value of ₹237.33 is below the current price, and the Graham number of ₹75.86 leaves a margin of safety of minus 312.87%. The PEG ratio of 52.13 is a warning, not a value signal. I do appreciate the ROCE of 17.23% and the latest quarter sales of ₹1,326 crore with net profit of ₹42 crore. The company enjoys a decent position, but a 53.55 P/E for a business with falling profits is not something I can accept. Dividend yield of 0.48% does not compensate me while I wait for growth to return. Any investment must start with a fair price. Today, V-Guard fails that test. I will wait for either a lower price or clear proof that profit growth has resumed.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer