ScoreWhy is Vedant Fashions Ltd ?
1
High Management Efficiency with a high ROE of 30.19%
2
The company is Net-Debt Free
3
Poor long term growth as Operating profit has grown by an annual rate -0.76% of over the last 5 years
4
Negative results in Jun 26
- PBT LESS OI(Q) At Rs 75.84 cr has Fallen at -24.6% (vs previous 4Q average)
- ROCE(HY) Lowest at 22.80%
- NET SALES(Q) At Rs 301.37 cr has Fallen at -16.0% (vs previous 4Q average)
5
With ROE of 26.4, it has a Very Expensive valuation with a 8.5 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -25.35%, its profits have fallen by -2.6%
6
High Institutional Holdings at 21.15%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -25.35% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Vedant Fashions should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Vedant Fashions for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Vedant Fashions
-25.35%
-0.72
35.43%
Sensex
-9.4%
-0.70
13.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.53%
EBIT Growth (5y)
-0.76%
EBIT to Interest (avg)
13.20
Debt to EBITDA (avg)
0.65
Net Debt to Equity (avg)
-0.16
Sales to Capital Employed (avg)
0.67
Tax Ratio
24.42%
Dividend Payout Ratio
50.03%
Pledged Shares
0
Institutional Holding
21.15%
ROCE (avg)
36.61%
ROE (avg)
30.19%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
65
Price to Book Value
8.54
EV to EBIT
25.35
EV to EBITDA
19.63
EV to Capital Employed
10.03
EV to Sales
9.51
PEG Ratio
NA
Dividend Yield
1.44%
ROCE (Latest)
39.55%
ROE (Latest)
26.38%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.23 times
-10What is not working for the Company
PBT LESS OI(Q)
At Rs 75.84 cr has Fallen at -24.6% (vs previous 4Q average
ROCE(HY)
Lowest at 22.80%
NET SALES(Q)
At Rs 301.37 cr has Fallen at -16.0% (vs previous 4Q average
PAT(Q)
At Rs 80.61 cr has Fallen at -14.1% (vs previous 4Q average
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.20 times
Loading Valuation Snapshot...
Here's what is working for Vedant Fashions
Debt-Equity Ratio - Half Yearly
Lowest at 0.23 times
in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Here's what is not working for Vedant Fashions
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 75.84 cr has Fallen at -24.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 100.60 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
At Rs 301.37 cr has Fallen at -16.0% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 358.87 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 80.61 cr has Fallen at -14.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 93.89 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 2.20 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 29.69 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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