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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shahlon Silk

Mahalaxmi Rubtec

Jattashankar Ind

Super Sales Ind.

Maral Overseas

Bannari Amm Spg.

Shiva Texyarn

VIP Clothing

Filatex Fash.

Fractal Industri

Forcas Studio

Why is VIP Clothing Ltd ?

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

Poor long term growth as Net Sales has grown by an annual rate of 13.39% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 11.72 times
PAT(Q) At Rs 0.93 cr has Fallen at -58.1% (vs previous 4Q average)
OPERATING PROFIT TO INTEREST (Q) Lowest at 1.68 times
DEBTORS TURNOVER RATIO(HY) Lowest at 2.32 times

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -44.04% 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

-44.04%

-0.96

46.02%

Sensex

8.53%

0.73

11.73%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.39%

EBIT Growth (5y)

38.16%

EBIT to Interest (avg)

0.65

Debt to EBITDA (avg)

3.22

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

0.80

Tax Ratio

30.55%

Dividend Payout Ratio

Pledged Shares

18.48%

Institutional Holding

0.46%

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

0.88

EV to EBIT

12.39

EV to EBITDA

10.78

EV to Capital Employed

0.91

EV to Sales

0.95

PEG Ratio

0.08

Dividend Yield

ROCE (Latest)

7.74%

ROE (Latest)

4.13%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

8What is working for the Company

PAT(9M)

At Rs 5.39 cr has Grown at 77.30%

ROCE(HY)

Highest at 8.00%

DEBT-EQUITY RATIO(HY)

Lowest at 0.40 times

-17What is not working for the Company

PAT(Q)

At Rs 0.93 cr has Fallen at -58.1% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.68 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.32 times

NET SALES(Q)

Lowest at Rs 50.78 cr

PBDIT(Q)

Lowest at Rs 3.68 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 7.25%

PBT LESS OI(Q)

Lowest at Rs 0.85 cr.

EPS(Q)

Lowest at Rs 0.10

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Here's what is working for VIP Clothing

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

Net Sales - Quarterly

At Rs 50.78 cr has Fallen at -21.6% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 64.77 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 0.85 cr has Fallen at -69.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2.78 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 0.93 cr has Fallen at -58.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 2.22 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 1.68 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

Lowest at Rs 50.78 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 3.68 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 7.25%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 0.85 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.10

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

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