Vadilal may touch at Rs 250
By Aditya Rangroo
New Delhi, June 17: Chocobar, Feast and Vanilla cups are the hallmark of this summer. To beat the heat people rush to the ice cream parlors. The famous ice cream manufacturers such as Vadilal, Amul and Mother Dairy are few, which have dominated the market over the decades. Among all the industries, Vadilal is expected to touch at Rs 250 within 12-18 months.
In an interview with CNBC-TV18, PN Vijay, portfolio Manager, said that “Vadilal Industries is a fairly significant player in the ice-creams, frozen yogurts and frozen fruits market. It’s been traditionally Gujarat based company. The ice cream market in India about Rs 3,000 crore and about 60-70% is gone into the organized sector. Amul is the leader with about 35-40% market share and Vadilal and Levers after their acquisitions share about 22-23% each”.
Speaking about the market hold in the country, Vijay said that “Vadilal has got very strong brand equity in Western India. It’s moved into Rajasthan. It’s the biggest player. It moved into Delhi also, the biggest ice cream market in the country. The company did well. Last year they ended up with an EPS of about close to Rs 7. In terms of price earnings it’s around Rs 17-18."
Commenting on the expansion plans, Vijay said that “they have got strong expansion plans. It’s a low equity capital of Rs 7 crore or something. The market cap sales ratio is very low compared to other FMCG companies. The brand power is not getting reflected in the share price. The immediate trigger was the listing of the stock in the NSE a few days ago which gave it a sort of national presence and the stock went up sharply. But, even then, if you correct and after that Vadilal should be good. Because right now people are moving to branded stocks, FMCG stocks etc, and in terms of valuations it’s pretty low”.
He further added that there is some concern that it’s got a bit of debt on its portfolio. But, probably it might do some fund raising at some point of equity because the promoters have a very large stake to bring down the debt. The footprint is very strong and it’s moving in the Northern India market, the biggest market. And it should touch Rs 250 or so in the next 12-18 months.
By Aditya Rangroo
New Delhi, June 17: Chocobar, Feast and Vanilla cups are the hallmark of this summer. To beat the heat people rush to the ice cream parlors. The famous ice cream manufacturers such as Vadilal, Amul and Mother Dairy are few, which have dominated the market over the decades. Among all the industries, Vadilal is expected to touch at Rs 250 within 12-18 months.
In an interview with CNBC-TV18, PN Vijay, portfolio Manager, said that “Vadilal Industries is a fairly significant player in the ice-creams, frozen yogurts and frozen fruits market. It’s been traditionally Gujarat based company. The ice cream market in India about Rs 3,000 crore and about 60-70% is gone into the organized sector. Amul is the leader with about 35-40% market share and Vadilal and Levers after their acquisitions share about 22-23% each”.
Speaking about the market hold in the country, Vijay said that “Vadilal has got very strong brand equity in Western India. It’s moved into Rajasthan. It’s the biggest player. It moved into Delhi also, the biggest ice cream market in the country. The company did well. Last year they ended up with an EPS of about close to Rs 7. In terms of price earnings it’s around Rs 17-18."
Commenting on the expansion plans, Vijay said that “they have got strong expansion plans. It’s a low equity capital of Rs 7 crore or something. The market cap sales ratio is very low compared to other FMCG companies. The brand power is not getting reflected in the share price. The immediate trigger was the listing of the stock in the NSE a few days ago which gave it a sort of national presence and the stock went up sharply. But, even then, if you correct and after that Vadilal should be good. Because right now people are moving to branded stocks, FMCG stocks etc, and in terms of valuations it’s pretty low”.
He further added that there is some concern that it’s got a bit of debt on its portfolio. But, probably it might do some fund raising at some point of equity because the promoters have a very large stake to bring down the debt. The footprint is very strong and it’s moving in the Northern India market, the biggest market. And it should touch Rs 250 or so in the next 12-18 months.
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