GEPL Capital reccomended  'Buy' on VIP Industries at a target price of Rs 123 compared to market price of Rs 103 on November 27.

VIP industries is the largest player of the luggage segment in the domestic markets with a market share of 58% in the domestic market. The company has also come up with the multiple brands to attract different customers from various age groups and various segments.

The tourism industry is also growing rapidly in India which will benefit the organization to get higher growth. Strong brand value and large distribution network help VIP to penetrate the domestic market across the geographies.

Commenting on the investment rationale, GEPL Capital, said, ''At the CMP of Rs 103, VIP Industries is trading at 22.4 x it's FY15E which we believe is underpriced and looks attractive. We attach an exit P/E multiple of 22.3x its FY16E EPS of 5.51 a share. Based on our valuation we arrive at the target price of Rs 123 with a Buy rating & a potential upside of 19%.''

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