SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Vashishtha Luxury Fashion Ltd

BSE: 544508 NSE: ISIN: INE0WRP01016
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Vashishtha Luxury Fashion Ltd belong to?
Vashishtha Luxury Fashion Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Vashishtha Luxury Fashion Ltd a good quality company?
Vashishtha Luxury Fashion Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Vashishtha Luxury Fashion Ltd undervalued or overvalued?
Vashishtha Luxury Fashion Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 10.2 12.85
Price to Book 1.07 1.62
Price to Sales 1.37 1.72
EV to EBITDA 7.14 8.77
Q.4 Is Vashishtha Luxury Fashion Ltd a good buy now?
Vashishtha Luxury Fashion Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

Q.1 Gross Profit margin of Vashishtha Luxury Fashion Ltd?
Vashishtha Luxury Fashion Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.7% for FY-2025, which is in line with its 3-year median of 19.7%, indicating stable margins.

Q.2 Operating Profit Margin of Vashishtha Luxury Fashion Ltd?
Vashishtha Luxury Fashion Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.47% for FY-2025, which is in line with its 3-year median of 19.47% indicating stable margins.

Q.3 Net Profit Margin of Vashishtha Luxury Fashion Ltd?
Vashishtha Luxury Fashion Ltd Net Profit Margin is 13.39% for FY-2025, is in line with its 3-year median of 13.39%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 19.7 19.7
Operating Profit Margin (%) 19.47 19.47
Net Profit Margin (%) 13.39 13.39

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Vashishtha Luxury Fashion Ltd?
Vashishtha Luxury Fashion Ltd Return on Asset is 16.86%, which is above its 3-year historical median of 14.11%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Vashishtha Luxury Fashion Ltd?
Vashishtha Luxury Fashion Ltd Return on capital employed is 35.7% for FY-2025, which is in line with its 3-year historical median of 35.7%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Vashishtha Luxury Fashion Ltd?
Vashishtha Luxury Fashion Ltd Return on equity is 44.36% for FY-2025, which is in line with its 3-year historical median of 44.36%, indicating the business is making similar use of its shareholders capital.

C: How much debt does the business have and is it at a sustainable level?

Q.7 Debt to Equity ratio of Vashishtha Luxury Fashion Ltd?
Vashishtha Luxury Fashion Ltd Debt-to-Equity ratio is 0.45, which is above the industry average of 0.42, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Vashishtha Luxury Fashion Ltd?
Vashishtha Luxury Fashion Ltd Debt to cash flow from operations is -65.28, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Vashishtha Luxury Fashion Ltd?

Q.1 Promoter shareholding and pledge status of Vashishtha Luxury Fashion Ltd?
Promoters hold 66.09% of the Vashishtha Luxury Fashion Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Vashishtha Luxury Fashion Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Vashishtha Luxury Fashion Ltd vs industry peers?
Vashishtha Luxury Fashion Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 1.04%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 1
Gross Profit Growth (%) 178.7 6.9
Operating Profit Growth (%) 183.6 6.3
Net Profit Growth (%) 343.8 10
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.26 0.97
ROE (%) 44.36 5.2
ROCE (%) 35.7 7.53
Cash Conversion Cycle (days) -11.34 101

Valuation & price assessment

Q.1 Stock return of Vashishtha Luxury Fashion Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Vashishtha Luxury Fashion Ltd vs historical?
The current P/E ratio of 10.2 is lower than its historical median of 12.85, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 10.2 12.85 21.85
Price to Book 1.07 1.62 1.39
Price to Sales 1.37 1.72 1.29
EV to EBITDA 7.14 8.77 10.21

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: