Veto SwitchGuards - Regional Player Going National

Anyone tracking Veto Switchguards Ltd

Market Cap: ₹ 286.73 Cr.
Current Price: ₹ 156.45
P/B: 3.68
Stock P/E: 17.14
Dividend Yield: 1.23%

Company has good consistent profit growth of 28.05% over 5 years

It is leader in cables and electrical accessories in Rajasthan where it sells better than Anchor and Havells. It has started dubai business which has done great past year. It is now planing to increase distributors across India and be a player nationally.

How it is trying to compete against the giants like Havells ?
1. Offers 25 years warranty on Cables and switches
2. Price itself 5% lesser.
2. Offers greater credit period to the dealers(it deals directly in Rajasthan) and distributors.

It is currently operating at 1/3 capacity so capex not needed.

 

am not tracking.but good analysis.

 

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