VIP Clothing Ltd (VIPCLOTHNG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Saraswati Saree

RRIL

VIP Clothing

Shiva Texyarn

Vardhman Acrylic

DCM Nouvelle

Bhilwara Tech

Rudra Ecovation

Vardhman Polytex

Filatex Fash.

Ecoline Exim

Why is VIP Clothing Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.66%

Low ability to service debt as the company has a high Debt to EBITDA ratio of 11.72 times

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.51% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is VIP Clothing for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

VIP Clothing

-23.13%

-0.49

47.72%

Sensex

4.76%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.60%

EBIT Growth (5y)

26.00%

EBIT to Interest (avg)

0.61

Debt to EBITDA (avg)

3.22

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

0.80

Tax Ratio

27.96%

Dividend Payout Ratio

Pledged Shares

18.48%

Institutional Holding

0.50%

ROCE (avg)

-0.60%

ROE (avg)

1.46%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.70

EV to EBIT

19.54

EV to EBITDA

17.05

EV to Capital Employed

1.51

EV to Sales

1.50

PEG Ratio

0.20

Dividend Yield

ROCE (Latest)

7.74%

ROE (Latest)

4.70%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

23What is working for the Company

PAT(Latest six months)

At Rs 4.46 cr has Grown at 328.85%

NET SALES(Latest six months)

At Rs 131.52 cr has Grown at 20.27%

ROCE(HY)

Highest at 8.00%

OPERATING PROFIT TO INTEREST(Q)

Highest at 2.76 times

PBT LESS OI(Q)

Highest at Rs 3.24 cr.

DEBT-EQUITY RATIO(HY)

Lowest at 0.40 times

-6What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -37.36 Cr

INTEREST(9M)

At Rs 7.04 cr has Grown at 23.51%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.32 times

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Here's what is working for VIP Clothing

Profit After Tax (PAT) - Latest six months

At Rs 4.46 cr has Grown at 328.85%

Year on Year (YoY)

MOJO Watch

PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 66.07 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 2.76 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 3.24 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.40 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for VIP Clothing

Operating Cash Flow - Annually

Lowest at Rs -37.36 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Interest - Nine Monthly

At Rs 7.04 cr has Grown at 23.51%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 2.32 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio