Recent Price Movements and Market Context
On the day of the decline, Vedant Fashions fell by 1.11%, underperforming the Sensex which dropped by 0.26%. Over the past week, the stock has lost 1.87%, contrasting with the Sensex’s 0.64% gain. The one-month performance shows a sharper decline of 5.31%, while the three-month return stands at -18.78%, compared to the Sensex’s positive 4.19% over the same period.
Year-to-date, the stock has decreased by 2.80%, whereas the Sensex remained flat. The most striking figure is the one-year performance, where Vedant Fashions has plummeted by 54.07%, in stark contrast to the Sensex’s 9.31% rise. Over three years, the stock has lost 56.44%, while the benchmark index has surged 42.27%. The five- and ten-year returns for Vedant Fashions have remained flat at 0.00%, whereas the Sensex has delivered 76.90% and 235.43% respectively.
Vedant Fashions is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a persistent bearish trend. The stock has also recorded consecutive declines over the last two days, with a cumulative loss of 2.25% in that period.
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Financial Performance and Valuation Metrics
Vedant Fashions’ financial results have shown limited growth over the medium term. Net sales have increased at an annualised rate of 14.74% over the past five years, while operating profit has grown at 12.42% annually. However, the company reported flat results in the quarter ending June 2025, indicating a pause in momentum.
The return on equity (ROE) remains high at 26.4%, reflecting efficient capital utilisation. Despite this, the stock’s valuation is considered very expensive, with a price-to-book value ratio of 9.1. This valuation is notably higher than the average historical valuations of its peers, although the current trading price reflects a discount relative to those levels.
Profitability has also seen a decline, with profits falling by 4.3% over the past year. This contraction in earnings, combined with the steep share price decline, has contributed to the stock’s underperformance.
Comparative Performance and Market Position
Vedant Fashions has consistently underperformed the BSE500 index over the last three annual periods. The stock’s negative 54.07% return in the past year contrasts sharply with the broader market’s positive returns. This trend of lagging behind the benchmark has persisted, highlighting the stock’s relative weakness within the garments and apparels sector.
Despite the challenges reflected in its share price, the company maintains a low average debt-to-equity ratio of zero, indicating a debt-free capital structure. Institutional investors hold a significant 20.71% stake in the company, suggesting confidence from entities with substantial analytical resources.
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Mojo Score and Analyst Ratings
MarketsMOJO assigns Vedant Fashions a Mojo Score of 37.0, categorising the stock with a Sell grade as of 26 May 2025. This represents an upgrade from a previous Strong Sell rating, reflecting some improvement in outlook metrics, though the overall assessment remains cautious. The company’s market capitalisation grade stands at 3, indicating a mid-tier size within its sector.
The stock’s recent day change of -1.11% further emphasises the ongoing downward pressure. Its underperformance relative to the garments and apparels sector by 0.33% on the day highlights the stock’s relative weakness within its industry group.
Summary of Key Metrics
Vedant Fashions Ltd’s stock has reached a historic low of Rs.564, reflecting a sustained period of price erosion. The company’s financial growth rates, while positive, have not translated into share price appreciation. High valuation multiples juxtaposed with declining profits and consistent underperformance against benchmarks have contributed to the current market position.
Institutional ownership and a debt-free balance sheet remain notable features, alongside a strong ROE, but these factors have not been sufficient to arrest the stock’s decline. The trading below all major moving averages and the negative returns across multiple time frames underscore the challenges faced by the stock in regaining upward momentum.
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