Of late, VIP has been in the news for the sharp surge in its share price. The company, which has seen its profitability improve sharply (from a loss of `3.9 crore in 2008-09 to a profit of `58 crore in 2009-10), has also attracted investors 'attention.
Investors have mopped up companies with a play on the domestic consumption story. Renowned investors like Rakesh Jhunjhuwala had also purchased substantial shares of VIP, thereby boosting investor interest. VIP is a dominant player in the domestic luggage industry, with a market share of 58 per cent. While its longer term story seems to be good, its valuation (PE of 16 times based on estimated FY12 earnings) already factors in the company 's medium-term growth potential.
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