Ace investor Vijay Kedia has taken fresh positions in two companies, reflecting his bullish outlook on their growth prospects. His latest bets are in the luggage and electric vehicle sectors, sparking interest among market observers.
Share Price Movement
During Friday’s trading session, Greaves Cotton Ltd‘s share price reached an intraday high of Rs.188.68 per share, rising 8 percent from its previous close of Rs.174.08 per share. Later, the shares retreated before closing at Rs.183.27 apiece.
Similarly, VIP Industries Ltd’s share price reached an intraday high of Rs.268.90 per share, rising 3.4 percent from its previous close of Rs.260.00 per share. Later, the shares retreated before closing at Rs.267.15 apiece.
Fresh Investments
On December 9, 2024, Kedia Securities Private Ltd, the investment firm of ace investor Vijay Kedia, purchased 12 lakh shares of Greaves Cotton through a bulk deal on the NSE. The shares were acquired at an average price of Rs.208.87, representing a 0.52 percent stake in the company. This move highlights Kedia’s growing interest in the electric vehicle and clean energy space, given Greaves Cotton’s increasing focus on sustainable mobility solutions.
Similarly, Kedia Securities Private Ltd, led by renowned investor Vijay Kedia, acquired 7.25 lakh shares of VIP Industries via a bulk deal on the NSE. The shares were bought at an average price of Rs.545.97, translating to a 0.51 percent stake in the company. This investment signals Kedia’s confidence in the long-term growth potential of the branded luggage and travel accessories segment, where VIP Industries holds a strong market presence.
Financial Overview
Greaves Cotton Ltd reported consolidated revenue of Rs.750.60 crores in Q3 FY25, reflecting a year-on-year increase of nearly 13 percent from Rs.665.38 crores in Q3 FY24. Despite the revenue growth, net profit declined sharply by around 85 percent to Rs.6.68 crores, down from Rs.45.60 crores in the same quarter last year.
VIP Industries Ltd reported consolidated revenue of Rs.501 crores in Q3 FY25, representing an 8.24 percent decline from Rs.546 crores in Q3 FY24. The company posted a net loss of Rs.12 crores for the quarter, compared to a net profit of Rs.7 crores in the corresponding period last year, marking a notable deterioration in bottom-line performance.
Ratio Analysis
Greaves Cotton Ltd has a Return on Capital Employed (ROCE) of 4.53 percent and a Return on Equity (ROE) of 1.58 percent. Its Price-to-Earnings (P/E) ratio stands at 362.71, significantly higher than the industry average of 29. Furthermore, the company maintains a current ratio of 1.94, a debt-to-equity ratio of 0.06, and an Earnings Per Share (EPS) of Rs.0.48.
VIP Industries Ltd has a Return on Capital Employed (ROCE) of 0.57 percent and a Return on Equity (ROE) of (7.06) percent. Its Price-to-Earnings (P/E) ratio stands at 362.71, significantly higher than the industry average of 29. Furthermore, the company maintains a current ratio of 2.86, a debt-to-equity ratio of 1.28, and an EV (Enterprise Value) to Sales ratio of 2.03.
Written by – Siddesh S Raskar
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