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Check Before You Invest : VIP Clothing Ltd

BSE: 532613 NSE: VIPCLOTHNG ISIN: INE450G01024
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does VIP Clothing Ltd belong to?
VIP Clothing Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is VIP Clothing Ltd a good quality company?
VIP Clothing Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is VIP Clothing Ltd undervalued or overvalued?
VIP Clothing Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is VIP Clothing Ltd a good buy now?
VIP Clothing Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of VIP Clothing Ltd?
VIP Clothing Ltd revenue growth is 29.3% for FY-2025 , which is above its 5 year CAGR of 6.5% , indicating faster growth.
Q.2 Gross Profit margin of VIP Clothing Ltd?
VIP Clothing Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.5% for FY-2025 , which is above its 5 year median of -0.1% , indicating increasing margins.
Q.3 Operating Profit Margin of VIP Clothing Ltd?
VIP Clothing Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.22% for FY-2025 , which is above its 5 year median of 4.31% indicating increasing margins.
Q.4 Net Profit Margin of VIP Clothing Ltd?
VIP Clothing Ltd Net Profit Margin is 2.3% for FY-2025 , is above with its 5 year median of -0.73%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 3.5 -0.1
Operating Profit Margin 7.22 4.31
Net Profit Margin 2.3 -0.73
Q.5 Return on Asset of VIP Clothing Ltd?
VIP Clothing Ltd Return on Asset is 1.82%, which is above its 5 year historical median of -0.39%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of VIP Clothing Ltd?
VIP Clothing Ltd Return on equity is 3.65% for FY-2025 , which is above its historical median of -0.77%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of VIP Clothing Ltd?
VIP Clothing Ltd Return on capital employed is 6.34% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of VIP Clothing Ltd?
VIP Clothing Ltd Cash conversion cycle is 142 days, below its historical median of 157 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.95 0.85
ROE 3.65 -0.77
ROCE 6.34 2.35
Cash Conversion Cycle 142 days 157 days
Q.9 Debt to Equity ratio of VIP Clothing Ltd?
VIP Clothing Ltd Debt-to-Equity ratio is 0.45 , which is above with the industry average of 0.42 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of VIP Clothing Ltd?
VIP Clothing Ltd Debt to cash flow from operations is -2.08 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of VIP Clothing Ltd?
Promoters hold 46.55% of the VIP Clothing Ltd, with 18.48% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of VIP Clothing Ltd vs industry peers?
VIP Clothing Ltd revenue CAGR is 6.52% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 236.9 96.6
Gross Profit 8.3 3.2
Operating Profit 17 5.7
Net Profit 5 1.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.95 0.95
ROE 3.65 4.25
ROCE 6.34 7.55
Cash Conversion Cycle (days) 142.47 102

Valuation & price assessment

Q.1 Stock return of VIP Clothing Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -6.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -6.4% 12.3% -18.7% -40.2%
Q.3 Valuation ratios of VIP Clothing Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 25.29 0.00 30.76
Price to Book 1.04 0.60 1.39
Price to Sales 0.8 0.61 1.01
EV to EBITDA 11.23 0.00 9.47

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