V-Guard Industries Ltd
Fundamental and Technical Analysis of V-Guard Industries
STOCK ANALYSIS
11/20/20255 min read
About Company
The Indian company V-Guard Industries Ltd. was established in 1977 and has its main office in Kochi. It is a well-known producer of home appliances and electrical goods, first becoming well-known for its voltage stabilisers. Digital UPS systems, inverters, electric water heaters, residential and agricultural pumps, electric fans, wiring cables, switchgear, kitchen appliances, and solar water heaters have all been added to V-Guard's product line over time. The corporation employs thousands of people in its manufacturing facilities and runs a robust network of distributors, merchants, and branches throughout India. Recognised for its emphasis on quality, dependability, and customer service, V-Guard keeps innovating and expanding its product line to serve customers around the country to improve their lives through well-designed goods.
Business Segments
Electrical and household appliances are the main emphasis of V-Guard Industries' several business divisions. Voltage stabilisers, digital UPSs, and inverters that guarantee power stability and backup are among its primary product categories. In addition, it produces electric fans, water heaters, pumps for home and agricultural use, and wiring cables for use in homes, businesses, and industries. The company also sells kitchen equipment, lighting solutions, and switchgear. These markets are bolstered by an emphasis on quality and innovation, which allows V-Guard to service a broad spectrum of clients throughout India via a vast distribution network.
Company Facilities
In order to service its wide range of products, V-Guard Industries has a number of strategically placed manufacturing locations in India. These facilities are outfitted with cutting-edge machinery and contemporary technology to guarantee the manufacture of high-quality electrical goods, water heaters, pumps, and other appliances. To effectively manage sales, supply chain, and customer support, the corporation runs regional offices and a vast distribution network around the nation in addition to production facilities. V-Guard can uphold its reputation for dependable goods and prompt delivery thanks to these strong facilities.
Production Capacity
V-Guard Industries has been continuously boosting its production capacity across multiple product lines with a focus on increasing in-house manufacturing. It runs production facilities for essential goods like water heaters, batteries, fans, stabilizers, cables, and kitchen appliances. Particularly, V-Guard's kitchen appliance factory in Vapi, Gujarat, can install 3.6 million gas stoves and 7 lakh mixer grinders annually. Every year, the battery plant near Hyderabad produces over 3.6 lakh inverter batteries. The company follows a strategy to increase in-house production, which currently accounts for over 65% of its products. In order to support future growth and innovation, it is also building new factories and an Innovation Campus with R&D and product design facilities. This expansion corresponds with its goal of sustaining market leadership and satisfying increasing demand in the Indian market.
Future Plans
Future plans for V-Guard Industries center on growing its manufacturing capacity, boosting internal production, and boosting innovation through R&D and technology. To increase product development and boost efficiency, the corporation is investing in new factories and an Innovation Campus. By launching new products and broadening its market reach throughout India, V-Guard hopes to solidify its position as a leader in the consumer electrical and home appliance industries. As the business strives for more environmentally friendly production methods and uses digital platforms to improve supply chain management and consumer engagement, sustainability and digital transformation are also top concerns. In a competitive market, these programs are intended to promote long-term growth and customer satisfaction.
Financial Prospects of the Company
The market capitalization of the company is 15,185 crores
The stock price is 348
The price-to-earnings (PE) ratio is 52.3
The book value (PB) ratio is 50.2
The price-to-book value (PB x PE) ratio is 362
The return on equity (ROE) is 15.8%
The return on capital employed (ROCE) is 19.5%
The annual dividend yield of the company is 0.43%
The company has cash equivalents of 55.1 crores
The company's sales and profits in the last 5 years
In FY 2020-21, sales were 2,721 crores and profits were 202 crores. In FY2021-22, sales were 3,500 crores and profits were 228 crores. In FY2022-23, sales were 4,127 crores and profits were 189 crores. In FY2023-24, sales were 4,857 crores and profits were 258 crores. In FY2024-25, sales were 5,578 crores and profits were 314 crores.
Sales and profits growth in the last 5 years
In the last 5 years, the sales growth was 17.4% and the profit growth was 10.6%. In the last 3 years, sales growth was 16.8% and the profit growth was 10.8%. In the last 1 year, the sales growth was 6.34% and the profit growth was -2.12%.
Investors
Shareholding Patterns
The promoter holds 53.33%, FIIs hold 12.45%, DIIs hold 2.86%, Public hold 11.35%
Company's latest news
Recently, V-Guard Industries launched a number of strategic initiatives that align with company's ambitions for growth and expansion. The company's board authorised the merging of Sunflame Enterprises, a wholly-owned subsidiary that focuses on kitchen appliances, in July 2025 in order to boost margin gains and operational efficiency. In order to expand its product line and enhance its current electrical and consumer durable categories, V-Guard also made the decision to enter the lighting industry. Despite a drop in stabiliser and inverter sales, the business recorded a consolidated net revenue of INR 1,340 crores with a notable rise in the electrical segment's margin. While modifying distribution tactics to reach underrepresented populations, the company maintains a cautiously positive outlook for future development, particularly in the solar and water heater segments. Strong financial health is also indicated by V-Guard's debt reduction and dividend payout. As of November 2025, the company's share price was approximately ₹348, and mutual funds continued to show interest.
Technical Analysis
Company Chart
Moving Averages (MA)
The stock is trading under the 50-MA, which indicates that the stock is in a bearish trend.
The stock is also trading under the 200-MA, which strongly indicates that the stock is in a bearish trend.
Relative Strength Index (RSI)
The current RSI of the stock is 25, which shows that it is neither in the oversold zone nor in the overbought zone.
Chart Patterns
The chart patterns show that the stock has hit its previous double-bottom price range. Right now, it seems to be in a sideways trend.
Strengths and weaknesses of the company
Strengths
Strong brand recognition and market leadership in voltage stabilizers and consumer electrical products.
Diverse product portfolio including water heaters, pumps, kitchen appliances, and solar water heaters.
Robust manufacturing facilities with ongoing capacity expansion and focus on in-house production.
Extensive distribution network covering urban and rural markets across India.
Consistent focus on quality, innovation, and customer service.
Financially stable with prudent debt management and healthy dividend payouts.
Weaknesses
Dependence on the Indian market with limited international presence.
Exposure to raw material price fluctuations impacting margins.
Intense competition from both organised and unorganized players in the electrical appliances.
Limited diversification beyond electrical and home appliance categories compared to large conglomerates.