Check Before You Invest : Vedant Fashions Ltd

Snapshot

Q.1 Which industry/sub-sector does Vedant Fashions Ltd belong to?

Vedant Fashions Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Vedant Fashions Ltd a good quality company?

Vedant Fashions Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Vedant Fashions Ltd undervalued or overvalued?

Vedant Fashions Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Vedant Fashions Ltd a good buy now?

Vedant Fashions Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Vedant Fashions Ltd?

Vedant Fashions Ltd revenue growth is 1.4% for FY-2025, which is below its 5-year CAGR of 8.66%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Vedant Fashions Ltd?

Vedant Fashions Ltd Return on capital employed is 33.92% for FY-2025, which is below its 5-year historical median of 39.57%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Vedant Fashions Ltd?

Vedant Fashions Ltd Return on Asset is 11.12%, which is below its 5-year historical median of 13.51%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vedant Fashions Ltd?

Vedant Fashions Ltd Return on equity is 23.04% for FY-2025, which is below its 5-year historical median of 27.79%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Vedant Fashions Ltd?

Vedant Fashions Ltd Cash conversion cycle is 159 days, above its 5-year historical median of 145 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.4	0.45
ROE	23.04	27.79
ROCE	33.92	39.57
Cash Conversion Cycle	159 days	145 days

Q.6 Gross Profit margin of Vedant Fashions Ltd?

Vedant Fashions Ltd Gross profit margin which is the profit after deduction of direct costs, is 48.5% for FY-2025, which is in line with its 5-year median of 49.8%, indicating stable margins.

Q.7 Operating Profit Margin of Vedant Fashions Ltd?

Vedant Fashions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 46.37% for FY-2025, which is in line with its 5-year median of 47.62% indicating stable margins.

Q.8 Net Profit Margin of Vedant Fashions Ltd?

Vedant Fashions Ltd Net Profit Margin is 28.02% for FY-2025, is below with its 5-year median of 30.29%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	48.5	49.8
Operating Profit Margin	46.37	47.62
Net Profit Margin	28.02	30.29

Q.9 Debt to Equity ratio of Vedant Fashions Ltd?

Vedant Fashions Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.5, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vedant Fashions Ltd?

Vedant Fashions Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vedant Fashions Ltd?

Promoters hold 74.94% of the Vedant Fashions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vedant Fashions Ltd vs industry peers?

Vedant Fashions Ltd revenue CAGR is 8.66%, compared to the industry median CAGR of 4.23%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.4	4.2
Gross Profit Growth	-1.5	8.6
Operating Profit Growth	-2.3	7.5
Net Profit Growth	-6.3	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.4	0.98
ROE	23.04	6.1
ROCE	33.92	7.6
Cash Conversion Cycle (days)	159.06	109

Valuation & price assessment

Q.1 Stock return of Vedant Fashions Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of -29.53% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-29.5%	-45.7%

Q.3 Valuation ratios of Vedant Fashions Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	28.87	72.32	19.97
Price to Book	5.64	18.92	1.32
Price to Sales	7.45	22.66	1.06
EV to EBITDA	14.84	43.10	9.32

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