Highlights

Current Market Price: Rs. 453

Target: Rs. 622

Upside: 37%

Horizon: 9-12 months

Summary

  • In my previous article, I pitched Safari Industries. I am bullish on the organized luggage industry as a whole. This is an ongoing story which will play out due to shift from unorganized to organized, increasing air travel, shifted from having a utilitarian value to becoming a fashion trend. VIP is the market leader of the luggage industry.
  • The Indian luggage industry is valued at ~Rs. 10,000 Cr and is largely dominated by the unorganized sector. The top three branded players namely- VIP Industries, Samsonite and Safari forms roughly a third of this market.


Price chart:


VIP Industries has given almost 10x returns in the last 5 years

Introduction

  • VIP Industries is Asia’s leading manufacturer/seller of hard and soft luggage, backpacks, suitcases, shoulder bags, office bags and duffel trolleys. It has a range of leading brands, positioned across entire price range, catering to value, mid and premium price points.
  • Apart from its flagship brand VIP, the company has a diversified product portfolio catering to various price points and consumer categories. Alfa & Aristocrat cater to the value segment, Skybags caters to the sub-mid segment while Carlton and VIP cater to the high-end segments.