Check Before You Invest : Veekayem Fashion And Apparels Ltd

Snapshot

Q.1 Which industry/sub-sector does Veekayem Fashion And Apparels Ltd belong to?

Veekayem Fashion And Apparels Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Veekayem Fashion And Apparels Ltd a good quality company?

Veekayem Fashion And Apparels Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Veekayem Fashion And Apparels Ltd undervalued or overvalued?

Veekayem Fashion And Apparels Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Veekayem Fashion And Apparels Ltd a good buy now?

Veekayem Fashion And Apparels 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

Q.1 Revenue growth of Veekayem Fashion And Apparels Ltd?

Veekayem Fashion And Apparels Ltd revenue growth is 31.8% for FY-2025, which is above its 5-year CAGR of 8.31%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Veekayem Fashion And Apparels Ltd?

Veekayem Fashion And Apparels Ltd Return on capital employed is 14.05% for FY-2025, which is above its 5-year historical median of 10.2%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Veekayem Fashion And Apparels Ltd?

Veekayem Fashion And Apparels Ltd Return on Asset is 4.23%, which is above its 5-year historical median of 1.47%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Veekayem Fashion And Apparels Ltd?

Veekayem Fashion And Apparels Ltd Return on equity is 16.96% for FY-2025, which is above its 5-year historical median of 6.28%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Veekayem Fashion And Apparels Ltd?

Veekayem Fashion And Apparels Ltd Cash conversion cycle is 142 days, below its 5-year historical median of 158 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.78	1.63
ROE	16.96	6.28
ROCE	14.05	10.2
Cash Conversion Cycle	142 days	158 days

Q.6 Gross Profit margin of Veekayem Fashion And Apparels Ltd?

Veekayem Fashion And Apparels Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.7% for FY-2025, which is above its 5-year median of 2.4%, indicating increasing margins.

Q.7 Operating Profit Margin of Veekayem Fashion And Apparels Ltd?

Veekayem Fashion And Apparels Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.26% for FY-2025, which is above its 5-year median of 6.62% indicating increasing margins.

Q.8 Net Profit Margin of Veekayem Fashion And Apparels Ltd?

Veekayem Fashion And Apparels Ltd Net Profit Margin is 2.38% for FY-2025, is above with its 5-year median of 1.27%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.7	2.4
Operating Profit Margin	7.26	6.62
Net Profit Margin	2.38	1.27

Q.9 Debt to Equity ratio of Veekayem Fashion And Apparels Ltd?

Veekayem Fashion And Apparels Ltd Debt-to-Equity ratio is 2.29, which is above with the industry average of 0.5, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Veekayem Fashion And Apparels Ltd?

Veekayem Fashion And Apparels Ltd Debt to cash flow from operations is -32.94, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Veekayem Fashion And Apparels Ltd?

Promoters hold 73.61% of the Veekayem Fashion And Apparels Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Veekayem Fashion And Apparels Ltd vs industry peers?

Veekayem Fashion And Apparels Ltd revenue CAGR is 8.31%, 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	31.8	4.2
Gross Profit Growth	71.5	8.6
Operating Profit Growth	45.5	7.5
Net Profit Growth	89.6	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.78	0.98
ROE	16.96	6.1
ROCE	14.05	7.6
Cash Conversion Cycle (days)	142.13	109

Valuation & price assessment

Q.1 Stock return of Veekayem Fashion And Apparels Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 41.75% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	41.8%	-42.6%

Q.3 Valuation ratios of Veekayem Fashion And Apparels 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	12.77	24.05	19.97
Price to Book	1.39	2.55	1.32
Price to Sales	0.3	0.40	1.06
EV to EBITDA	8.85	10.46	9.32

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