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

Osiajee Texfab

VIP Clothing

Active Clothing

Maral Overseas

RRIL

Saraswati Saree

Brand Concepts

Bhilwara Tech

Zodiac Cloth. Co

Rudra Ecovation

C P S Shapers

Why is VIP Clothing Ltd ?

Poor Management Efficiency with a low ROCE of 3.37%

The company has been able to generate a Return on Capital Employed (avg) of 3.37% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.04 times

Poor long term growth as Net Sales has grown by an annual rate of 12.15% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.04 times
The company has been able to generate a Return on Equity (avg) of 1.99% signifying low profitability per unit of shareholders funds

Healthy long term growth as Operating profit has grown by an annual rate 85.91%

With a growth in Net Profit of 375.27%, the company declared Very Positive results in Mar 26

PAT(Q) At Rs 4.42 cr has Grown at 126.4% (vs previous 4Q average)
ROCE(HY) Highest at 8.07%
DEBT-EQUITY RATIO(HY) Lowest at 0.36 times

With ROCE of 7.7, it has a Very Attractive valuation with a 1.1 Enterprise value to Capital Employed

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 -37.10%, its profits have risen by 79.7% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to VIP Clothing 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 VIP Clothing for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

VIP Clothing

-37.56%

-0.73

51.54%

Sensex

-8.18%

-0.63

13.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.15%

EBIT Growth (5y)

85.91%

EBIT to Interest (avg)

0.84

Debt to EBITDA (avg)

4.03

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.81

Tax Ratio

21.49%

Dividend Payout Ratio

Pledged Shares

18.48%

Institutional Holding

0.16%

ROCE (avg)

1.12%

ROE (avg)

1.99%

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

1.20

EV to EBIT

14.92

EV to EBITDA

13.20

EV to Capital Employed

1.15

EV to Sales

1.19

PEG Ratio

0.30

Dividend Yield

ROCE (Latest)

7.70%

ROE (Latest)

5.05%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

20What is working for the Company

PAT(Q)

At Rs 4.42 cr has Grown at 126.4% (vs previous 4Q average

ROCE(HY)

Highest at 8.07%

DEBT-EQUITY RATIO(HY)

Lowest at 0.36 times

OPERATING PROFIT TO INTEREST(Q)

Highest at 3.57 times

NET SALES(Q)

Highest at Rs 71.54 cr

PBDIT(Q)

Highest at Rs 6.82 cr.

PBT LESS OI(Q)

Highest at Rs 4.27 cr.

EPS(Q)

Highest at Rs 0.49

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Loading Valuation Snapshot...

Here's what is working for VIP Clothing

Profit After Tax (PAT) - Quarterly

At Rs 4.42 cr has Grown at 126.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1.95 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 3.57 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

At Rs 4.27 cr has Grown at 75.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2.44 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.36 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

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

Debt-Equity Ratio

Net Sales - Quarterly

Highest at Rs 71.54 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 6.82 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 4.27 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 4.42 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 0.49

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)