VIP Industries Stock Research

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VIP Industries Overview

VIP industries is leading name in Indian Luggage market space. You may have heard name of it and used the products as well. It was regarded as the brand in Luggage space one generation ago. Now the competition is more with introduction of American Tourister brand.

VIP Industries is one of the largest player in Luggage market space not only in India but World. There are several well known brands from this company. I have listed the brand names below so that you can easily associate with the company and know the reach of it.

  • ALFA
  • VIP

So it is increasing and expanding it’s foot print to all Luggage space with time. It also has some patents filed as well. As of this writing the company has more than 8000 retail outlets across India and with a network of over 1300 retailers across 27 countries.

So from above statistics it is clear that Company has brand recognition and has grown over the years from Local player to Global scene. Now lets see if this growth is reflected in share price or not. The ultimate thing is stock price performance for a company because that is where you make money.

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VIP Industries Stock Performance

Below graph shows price performance of VIP Industries for past 16 years or so. I have taken long time frame so that cyclic price fluctuations are taken care of.

VIP Industries Share Price Performance 2018
VIP Industries Share Price Performance 2018

As you can see above in year 2002 the company was trading around 5 mark. It did not grow for some years and after years of consolidation it spiked in year 2006. But the stock price crashed slowly during 2008 crisis. This was for all stocks so you can not say that business results were not in line with expectations.

From year 2012 to 2017 also it was not able to cross the 200 mark it created in year 2012. this was year of consolidation and prices were moving in range of 100 and just above it. The stock performed well in last one year or so and moved past 600.

So if any one has invested in year 2002 and waited till date then he has made money in this counter. The dividend yield at current market price is also around .75%. So investors are getting benefited from regular dividend pay as well as stock price performance.

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So the company growth we say in overview section is justified by the stock price performance of the company as well.

VIP Industries My Opinion

As mentioned in Overview section VIP Industries is a reputable brand in India. With rise of Foreign brands and their popularity it has to come up with new formats and product designs to woo the urban customers.

Currently the eCommerce platform is growing big and people has visibility to wide range of brands and products from all major companies around the world. How company copes up with this challenge will define its future?

Note Videocon one the prime and marquee name in Electronics area has failed to cope up foreign and emerging competition. It is getting reflected in share price. So you should evaluate this possibility before making a decision.

VIP industries is in portfolio of famous investor Rakesh Jhunjhunwala. This is one comfort factor for many investors as well. The tag or largest player and patents definitely help the company in road forward.

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Luggage space will continue to grow as a segment. It is basic need of people. It is soon becoming trendy and style statement as well. So companies keeping this thing in mind will continue to move forward.

You can keep a close eye on this company. A simple way is to add this company to your stock watch list.

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