V-Guard Industries Limited

Industrials — Electrical Equipment & Parts · NSE

₹287.30−₹0.70 (−0.24%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of V-Guard Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

V-Guard Industries Limited manufactures and sells electrical and electronic products in India and internationally. It operates through four segments: Electronics, Electrical, Consumer Durables and Sunflame.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees3,219

Annual revenue₹5,918 Cr

How does it make money?

Turns over ₹5,918 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 3,219 employees supports ₹1.84 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.84 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What is the outlook?

16 analysts covering the stock expect revenue to grow about 12.5% and earnings to grow about 17.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.5%

Est. earnings growth+17.3%

Analysts16

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +45% while net margin moved +13% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+45%

Margin effect+13%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 34.7x already prices in growth
✓ P/E is 46% below its own historical median of 64.5x — cheap by its own standards
✗ P/B of 5.29x is a steep premium to book

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

64/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

34.7x

3Y Median

64.5x

40 monthly readings · mean 61.8x · range 41.0x–105.7x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 46% below its 3y median of 64.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 61% below the peer median of 88.8x.

vs. its own history

Cheap

64.5x median over 40 months · -46%

vs. sector peers

Cheap

88.8x median of 3 peers · -61%

vs. generic bands

Fair

15x–35x

EV/EBITDA

23.2x

PEG

1.96

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 67% over 3 years.
Return on capital is rising
ROCE has improved from 13.0% to 16.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴High leverageFinancial
Debt/Equity of 6.96x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 67% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 46% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 61% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 6.96x. Interest is payable whether or not the business has a good year.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.1% CAGR
Latest reported year was 23.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹279 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹12,552 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.7x

Fair

Fairly valued against the generic band

P/B Ratio

5.29x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹8.29

Profitable

Profitable on a per-share basis

ROE

13.0%

Moderate

Moderate capital efficiency

ROCE

16.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

6.96x

High

High leverage

Revenue Growth (YoY)

23.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

76.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.52%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹279 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

25.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.0%

Average

Average margins

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

1.80

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

302.0 / 319.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

35.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,092 Cr	₹4,822 Cr	₹5,537 Cr	₹5,918 Cr	+13.1%
EBITDA	₹331 Cr	₹443 Cr	₹529 Cr	₹546 Cr	+18.1%
EBITDA Margin	8.1%	9.2%	9.6%	9.2%	—
PAT (Net Profit)	₹189 Cr	₹258 Cr	₹314 Cr	₹308 Cr	+17.7%
EPS	₹4.35	₹5.88	₹7.14	₹7.01	+17.2%
ROE	11.8%	14.2%	15.0%	13.0%	—
ROCE	13.0%	17.6%	18.9%	16.0%	—
Total Debt	₹503 Cr	₹401 Cr	₹134 Cr	₹165 Cr	-31.0%
Free Cash Flow	₹321 Cr	₹265 Cr	₹356 Cr	₹279 Cr	-4.6%

🟢 Revenue has grown at 13.1% a year over 3 years.

🟢 EBITDA has grown at 18.1% a year over 3 years.

🟢 EBITDA Margin has risen from 8.1% to 9.2% over 3 years (+1.1 pts).

🟢 PAT (Net Profit) has grown at 17.7% a year over 3 years.

🟢 EPS has grown at 17.2% a year over 3 years.

🟢 ROE has risen from 11.8% to 13.0% over 3 years (+1.2 pts).

🟢 ROCE has risen from 13.0% to 16.0% over 3 years (+3.0 pts).

🟢 Total Debt has shrunk at 31.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 4.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,714 Cr

Total Liabilities

₹1,341 Cr

Cash & Equivalents

₹47 Cr

Operating Cash Flow

₹459 Cr

Capex

-₹180 Cr

Shareholding (proxy)

Institutional Holding

31.1%

Insider Holding

55.4%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

31 Jul 2026

Analyst Consensus

Recommendations

15 Buy · 1 Hold · 1 Sell

Target Price (Mean)

₹397.18

+38.2% vs CMP

Target Range

₹306 – ₹450

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

3 mixed3 general

V-Guard Industries (NSEI:VGUARD) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

V-Guard Industries Stock Slides as Earnings Hold Up

Kalkine India, 13 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

V-Guard Industries (VGUARD) 52 Week Low Streak Deepens for Second Straight Session

Univest, 12 Oct

VGUARD Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Compare V GUARD IND. with

Equitymaster, 08 Oct

V-Guard Industries Ltd. Peer Comparison – Compare with Others

Value Research, 29 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑