V-Guard Industries Limited (VGUARD) AI Stock Analysis

• Market Cap: ₹149.43B
• Dividend Yield: 0.45%
• Average Volume (3M): 133.00K
• Price to Earnings (P/E): 52.7
• Beta (1Y): 1.04
• Revenue Growth: 6.34%
• EPS Growth: -2.25%
• Country: IN
• Employees: 3,006
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.80
• Shares Outstanding: 436,344,640
• 10 Day Avg. Volume: 137,322
• 30 Day Avg. Volume: 133,005
• PEG Ratio: 2.26
• Price to Book (P/B): 7.33
• Price to Sales (P/S): 2.76
• P/FCF Ratio: 43.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹345.00 ▲(3.39% Upside)

V-Guard Industries' strong financial performance is the primary driver of its stock score, supported by robust revenue and profit growth and a solid balance sheet. However, the high P/E ratio and low dividend yield negatively impact the valuation score, while technical indicators suggest a neutral market sentiment.

Positive Factors

Low leverage / strong balance sheet

Very low debt-to-equity (0.064) and a strong equity ratio provide durable financial flexibility. This reduces refinancing risk, supports counter-cyclical spending on distribution, product launches or capex, and helps the firm absorb demand shocks without impairing operations.

Robust cash generation

Strong FCF growth (34.7%) and operating cash conversion >1.5x indicate durable cash generation. This supports reinvestment in channel expansion, after-sales service, working capital and selective M&A without heavy reliance on external financing, enhancing long-term resilience.

Diversified product portfolio and multi-channel distribution

A broad appliance and electrical product mix plus dealer/retailer/e‑commerce reach reduces reliance on any single category or channel. This structural diversification supports steady replacement demand, cross-selling, and geographic expansion, making revenue streams more durable over economic cycles.

Negative Factors

EBITDA margin compression

A declining EBITDA margin indicates rising operating or overhead costs that could erode the cash buffer generated by sales. If sustained, margin compression limits funds for capex, marketing and service networks, weakening the company's ability to scale profitably over time.

Negative EPS growth

Negative EPS growth implies per-share profitability has declined despite revenue gains. Over months, this can signal dilution, cost pressures or weaker operational leverage, constraining shareholder returns and potentially limiting ability to fund organic growth from retained earnings.

Exposure to commodity and sourcing cost volatility

Significant input sensitivity (copper/aluminum) and partial reliance on third‑party manufacturing create structural margin risk. Persistent commodity swings or supplier disruptions can compress margins and force frequent price adjustments, weakening long‑term profitability predictability.

V-Guard Industries Limited Business Overview & Revenue Model

Company Description

V-Guard Industries Limited manufactures, sells, and trades in electric and electronic goods in India and internationally. It operates through Electronics, Electrical, and Consumer Durables segments. The company offers a range of products, including voltage stabilizers, digital UPS, inverters and inverter batteries, electric water heaters, solar water heaters, wiring and industrial cables, fans, mixer grinders, induction and gas cooktops, gas stoves, rice cookers, grill king, toasters, kettles, chimneys, sandwich maker, kitchen hoods, water purifier, domestic pumps, agricultural pumps, electric and industrial motors, domestic switch gears, distribution boards, and modular switches, as well as solar power systems and air coolers. It sells its products through distributors, dealers, sellers, and service centers. The company was founded in 1977 and is based in Kochi, India.

How the Company Makes Money

V-Guard generates revenue primarily through the sale of its diverse range of electrical and electronic products. The company has multiple key revenue streams, including the sales of voltage stabilizers, inverters, and batteries, which are crucial for power management in homes and businesses. Additionally, V-Guard earns income from its solar solutions and home appliances. The company's revenue is supported by a strong distribution network, consisting of both direct sales and a wide array of dealers and retailers across India. Strategic partnerships with suppliers and collaborations in the energy sector also contribute to its earnings, enabling the company to enhance its product offerings and expand its market presence.

V-Guard Industries Limited Financial Statement Overview

Summary

V-Guard Industries demonstrates strong financial performance with significant revenue and profit growth. The balance sheet is solid with low leverage and efficient equity utilization. Cash flow generation is robust, though there is potential for further improvement in cash flow efficiency.

Income Statement

V-Guard Industries shows strong revenue growth with a 14.85% increase from 2024 to 2025. Gross profit margin improved to 36.26%, indicating efficient cost management. Net profit margin increased to 5.62%, and EBIT margin rose to 26.95%, reflecting enhanced profitability. However, EBITDA margin decreased to 9.20%, suggesting potential increases in operating expenses.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.064, indicating low leverage. ROE improved to 14.95%, showing efficient use of equity. The equity ratio is stable at 62.85%, implying a strong equity base. However, a slight increase in total liabilities warrants monitoring.

Cash Flow

Free cash flow grew by 34.68%, reflecting strong cash generation. The operating cash flow to net income ratio of 1.52 indicates robust cash conversion. However, free cash flow to net income ratio of 1.14 suggests room for improvement in cash flow generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	55.66B	55.78B	48.57B	41.26B	35.00B	26.99B
Gross Profit	16.91B	20.22B	9.15B	12.06B	6.10B	8.20B
EBITDA	4.93B	5.13B	4.60B	3.36B	3.50B	3.33B
Net Income	2.89B	3.14B	2.58B	1.89B	2.28B	2.01B
Balance Sheet
Total Assets	0.00	33.38B	31.61B	29.07B	20.97B	18.75B
Cash, Cash Equivalents and Short-Term Investments	746.40M	746.40M	876.70M	665.40M	608.37M	2.81B
Total Debt	0.00	1.34B	4.01B	5.03B	683.52M	692.68M
Total Liabilities	-20.98B	12.40B	13.47B	12.99B	6.94B	6.59B
Stockholders Equity	20.98B	20.98B	18.14B	16.08B	14.07B	12.11B
Cash Flow
Free Cash Flow	0.00	3.56B	2.65B	3.21B	-1.63B	1.57B
Operating Cash Flow	0.00	4.77B	3.93B	4.24B	-387.07M	2.22B
Investing Cash Flow	0.00	-969.20M	-1.53B	-7.71B	-1.20B	409.23M
Financing Cash Flow	0.00	-3.78B	-2.32B	3.26B	-614.81M	-57.37M

V-Guard Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 333.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VGUARD, the sentiment is Positive. The current price of 333.7 is above the 20-day moving average (MA) of 320.94, above the 50-day MA of 328.51, and below the 200-day MA of 360.68, indicating a neutral trend. The MACD of 3.90 indicates Negative momentum. The RSI at 62.04 is Neutral, neither overbought nor oversold. The STOCH value of 76.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VGUARD.

V-Guard Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRIDENT	69 Neutral	₹149.26B	32.57	―	1.84%	0.75%	37.44%
VGUARD	67 Neutral	₹149.43B	52.68	―	0.45%	6.34%	-2.25%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JYOTHYLAB	61 Neutral	₹89.42B	25.71	―	1.24%	1.62%	-7.32%
BAJAJELEC	57 Neutral	₹47.90B	46.63	―	0.62%	0.80%	-4.31%
WHIRLPOOL	56 Neutral	₹100.99B	28.65	―	0.53%	4.14%	16.19%

V-Guard Industries Limited Corporate Events

V-Guard Industries Secures Top Credit Rating from Crisil

V-Guard Industries Limited announced that Crisil Ratings has reaffirmed its highest credit rating, Crisil A1+, for its ₹150 crore Commercial Paper. This reaffirmation reflects the company’s strong financial position and stability, which is likely to bolster stakeholder confidence and enhance its market standing.