V-Guard is a newly listed company headquartered in Kerala.They are in the business for the last 30 years.Promoted by Kochouseph chittilappilly an engineer of Thrissur.They got acceptance in the field of voltage stabilizers when the voltage fluctuations were very common in Kerala.They were very quality conscious and the people of Kerala accepted the word V-guard as a trustworthy name.The corporate governance standard of the company is also very high.Then the company successfully diversified in to areas like water theme park and other electrical equipments like water heaters,fan etc.Quality management is an added asset.
The company issued IPO when the market was bearish. The isssue was for Rs.82.It went upto Rs.99 even in the rough weather.Then it started go down and it is now around Rs.55.The latest quarter result is published.The PE is 4.2(great).The issue proceeds are invested in different developmental schemes out of Kerala.In two years they also start to give yield.By the time the market sentiment also will reverse.
Then what will be the target of July 2010. No doubt it will be three times the current price.
Expect Rs 175 in two years