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VIP Industries: The #1 Luggage manufacturer of Asia. A thread 
(1/10)
#investwithticker #finance #StockMarket
(1/10)#investwithticker #finance #StockMarket
It is the 2nd largest Luggage manufacturer of the world
(Samsonsite being the 1st)
This company manufactures soft luggage
(68% of revenue) & hard luggage 
(32%of revenue).
(2/10)
(Samsonsite being the 1st)This company manufactures soft luggage
(68% of revenue) & hard luggage (32%of revenue).(2/10)
It has a wide brand list under its name : VIP, Skybags, Alfa & Aristocrat for mid range & affordable segment, Carlton for premium segment (UK brand, acquired) & Caprese (ladies hand bag) 
(3/10)
(3/10)
Industry: Safe to say that this industry is directly related to lavish spending 
& tourism 
Organised sector accounts for 40% in this industry while 60% still remains unorganized 
Among the branded players, VIP has 60% market share
(4/10)
& tourism Organised sector accounts for 40% in this industry while 60% still remains unorganized Among the branded players, VIP has 60% market share (4/10)
India’s 
rd largest player, Safari has been increasing its sales & market share massively over the years(at the cost of margin) Along with this company, VIP also faces threat from in-house production of e-comm brands
(5/10)
rd largest player, Safari has been increasing its sales & market share massively over the years(at the cost of margin) Along with this company, VIP also faces threat from in-house production of e-comm brands (5/10)
Soft luggagedominates the market with 75% share. Among which backpacks is the fastest growing & most competitive segment. This sector has huge competition from giants like Safari, American Tourister, Nike, Adidas & Puma (6/10)
dominates the market with 75% share. Among which backpacks is the fastest growing & most competitive segment. This sector has huge competition from giants like Safari, American Tourister, Nike, Adidas & Puma (6/10)
Raw Materials constitute 47% of total expenses. There is heavy dependency on China
for the same. In an attempt to negate this, it has installed manufacturing units in Bangladesh
for cheap labour (7/10)
for the same. In an attempt to negate this, it has installed manufacturing units in Bangladesh for cheap labour (7/10)
This industry hardly requires any debt. The company has 386 crores as borrowings which is for CAPEX purposes as per management
(8/10)
(8/10)
7% of total expenses are attributable to Advertising 
which is the most among peers! (9/10)
which is the most among peers! (9/10)
Financials: 5 year sales & profit growth are 10% & 19% resp. Not only market share but margins too have increased. Unique
ROE & ROCE is at 23% and 33% resp. CFO/PAT>1 and ICR is 7 times
(10/10)
#investwithticker #stockstowatch #stockmarket
ROE & ROCE is at 23% and 33% resp. CFO/PAT>1 and ICR is 7 times
(10/10)
#investwithticker #stockstowatch #stockmarket
