VIP Industries rose 1.09% to Rs 419 after China's yuan extended losses for the 11th day on Thursday.
The S&P BSE Sensex was down 223.46 points, or 0.60% at 37,228.38.China's yuan extended losses for the 11th day on Thursday, as US and China prepare to impose new tariffs on each other's goods. Prior to market opening, the People's Bank of China (PBOC) lowered its official midpoint marginally to a fresh 11-1/2-year low of 7.0858 per dollar.
VIP Industries' chairman, Dilip G Piramal, was quoted by the media as saying on Thursday, that a weakening onshore yuan is positive for the company since the company imports less than 50% from China. Meanwhile, US-China trade tussle helps the company as it get better deals from Chinese manufacturers, Piramal added.
The Union Cabinet on Wednesday approved 100% foreign direct investment (FDI) in contract manufacturing. The cabinet also eased local sourcing norms for FDI in single brand retail. Single-brand retailers are also allowed to open online stores before setting up brick-and-mortar shops.
Commenting on the FDI approvals, Piramal clarified to the media that luggage business is a narrow segment, with a few players. Hence single-brand retailing or contract manufacturing may not make any impact, he said.
On the BSE, 11214 shares were traded in the VIP Industries counter so far compared with average daily volumes of 27523 shares in the past one quarter. The stock hit a high of Rs 427.15 and a low of Rs 411 so far during the day.
The stock hit a 52-week high of Rs 645.05 on 28 Aug 2018. The stock hit a 52-week low of Rs 342 on 22 Jul 2019.
On a consolidated basis, the company's net profit rose 0.8% to Rs 63.84 crore on a 9% rise in the net sales to Rs 564.18 crore in Q1 June 2019 over Q1 June 2018.
The scrip has underperformed the market in past one year, down 32.86% as against Sensex's 3.71% fall.
VIP Industries is an Indian company which manufactures luggage and travel accessories.
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