About the Company

• Vedant Fashions Limited caters to the Indian celebration wear market with a diverse portfolio of products and brands.

• The company offers a one-stop destination with a wide spectrum of product offerings for every celebratory occasion to its customers.

• Its products include men’s ethnic and celebration wear items such as Indo-western, sherwanis, kurtas, jackets and accessories such as jutti, safa, mala and women’s ethnic and celebration wear items such as lehengas, sarees, stitched suits, gowns, and kurtis.

• The Company has 633 EBOs in India & 16 EBOs outside India.

• But, what is an EBO?

• EBO means an Exclusive Brand Outlet, where all merchandise of the same brand is sold.

• Have you heard of brand 'Manyavar’ and seen its stores?

• That’s an EBO. Manyavar is a category leader in the branded Indian wedding and celebration wear market with a pan-India presence.

Brands

• Along with Manyavar, Vedant Fashions has 4 more brands viz. Mohey, Twamev, Mebaz and Manthan.

Growth Strategy and Future Outlook

• Marketing

• Advertisements of VFL are designed in such a manner that those create deeper connect with the viewers.

Indian Demographics

• As per an IBEF report, ~9.7 Mn people would be getting added to the working age population in India for the coming few years.

• So, as these people will start earning and will get married, the brands who have a strong foothold in this domain should see a strong topline growth for a sustained period of time.

Expansion

The company ahs shown a 16% YoY growth in Sq. ft presence, which shows the pace at which the company is growing.

Financial Parameters

The financial parameters of the company are as follows:

ROCE: 39.8%

ROE: 34.6%

Debt to Equity: 0.21

OPM: 50%

The yearly revenues as well operating profits and PBT are all on an increasing trend

Overall, the financials look very good.

Technical Analysis

Retraced 61.8% of the uptrend (Lowest low and highest high) and then again resumed the uptrend - Bullish

Trading above 50 and 200 DEMA and both are upward sloping

Broke the neckline of the Double bottom pattern and did a retest

So, this was about Vedant Fashions Limited!

For watching a detailed analysis, you can refer: