Prabhudas Lilladher Downgrades VIP Industries to 'REDUCE', Sets Target at Rs 352

• Prabhudas Lilladher cuts FY27E/FY28E EPS estimates for VIP Industries by 31%/19% due to rising competitive pressure.
• The firm downgrades VIP Industries to 'REDUCE' from 'HOLD' with a target price of Rs 352 (36x FY28E EPS).
• VIP Industries reported weak results with a 9.4% YoY topline decline and GM at 29.5% due to a Rs 543mn inventory provision.
• The company has faced slow-moving inventory issues, with provisions totaling ~Rs 1,219mn in 9MFY26.
• Despite large-scale provisioning, adjusted GM of 44.3% in 9MFY26 indicates elevated competitive pressure.