Valuation and view: We expect V-Guard Industries to post 20.3% CAGR in revenue and 28.1% CAGR in PAT over FY14E-16E. We believe that growth has bottomed out after two quarters of lower single digit performance and is expected to accelerate, given the strong outlook of summer going forward and lower base effect. At CMP of INR442, the V-Guard Industries stock trades at 13.9x FY15E and 11.2x FY16E earnings respectively. We value V-Guard Industries at 14x FY16E EPS of INR39.3 and arrive at a target price of INR550. Maintain Buy.
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