Vedant Fashions Ltd logo

Vedant Fashions Ltd

MANYAVAR NSE

Vedant Fashions Limited caters to the Indian celebration wear market with a diverse portfolio of brands. The company offers its customers a one-stop destination for every celebratory occasion and the largest men's Indian wedding and celebration wear by revenue.VFL commands a dominant position in conventionally unorganized market segment.[1]

AI Verdict: HOLD Confidence: 5%

Vedant Fashions trades at a PE of 25.8x with decelerating growth (TTM sales growth of just 4% and flat profit growth at 0%), making the valuation hard to justify despite a strong ROE track record of 23% over 3 years. The stock has corrected 49% in the past year, which prices in some pain, but deteriorating working capital (254 days) and high debtors (166 days) signal operational stress.

Key Fundamentals

MicrocapSpeciality RetailRetail
Market Cap
₹10,007 Cr
Volatility
Moderate
P/E Ratio
26.71
EBITDA
₹728 Cr
Return on Equity
25.86%
Debt to Equity
0.25
Book Value
₹80.84
EPS
₹15.84
52W High
₹848
52W Low
₹329.2

Technical Indicators

Key Insights

Strengths

2
  • Company has a good return on equity (ROE) track record: 3 Years ROE 22.8%
  • Company has been maintaining a healthy dividend payout of 50.0%

Weaknesses

2
  • Company has high debtors of 166 days.
  • Working capital days have increased from 162 days to 254 days

Growth Rate

Revenue Growth
3.01% ↘
Net Income Growth
-3.47% ↘
Cash Flow Change
2.82% ↗
ROE
-15.63% ↘
ROCE
-19.11% ↘
EBITDA Margin (Avg.)
-0.65% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 20d ago
HOLD
Risk high

Vedant Fashions trades at a PE of 25.8x with decelerating growth (TTM sales growth of just 4% and flat profit growth at 0%), making the valuation hard to justify despite a strong ROE track record of 23% over 3 years. The stock has corrected 49% in the past year, which prices in some pain, but deteriorating working capital (254 days) and high debtors (166 days) signal operational stress.

Bull Case 7
  • Strong return on equity track record with 3-year ROE of 23% and 5-year ROE of 25%, indicating efficient capital allocation in a capital-light franchise model
  • Dividend yield of 2.01% is attractive for a consumer discretionary company and provides downside support at current depressed levels
  • 60% of analysts (6 out of 10) maintain a BUY rating, suggesting consensus sees value at current correction levels
  • 5-year compounded sales CAGR of 21% and profit CAGR of 24% demonstrate the long-term structural growth story in Indian wedding wear remains intact
  • Market cap of Rs 9,692 Cr after a 49% correction from highs offers a much more reasonable entry point versus prior elevated valuations
  • 10-year compounded profit growth of 15% and sales growth of 11% show the business has delivered consistent long-term compounding
  • Price-to-book of 4.93x is significantly lower than historical averages for this asset-light branded play, reflecting de-rating that may be overdone
Bear Case 8
  • Stock has destroyed shareholder value with 1-year return of -49% and 3-year CAGR of -32%, indicating sustained loss of market confidence
  • Working capital days have ballooned from 162 days to 254 days, a 57% deterioration signaling channel stuffing or demand slowdown at franchise level
  • Debtors at 166 days are alarmingly high for a retail/franchise business, suggesting franchisees are struggling to pay and inventory is not moving
  • TTM sales growth of just 4% and 3-year sales CAGR of only 3% indicate near-complete growth stagnation versus the 21% 5-year CAGR
  • Compounded profit growth at 0% TTM and -3% over 3 years shows margin pressure or operating deleverage despite the supposedly asset-light model
  • PE of 25.8x is still expensive for a company delivering zero profit growth — the market is pricing in recovery that may not materialize quickly
  • Last year ROE declined to 20% from the 3-year average of 23% and 5-year average of 25%, showing a deteriorating trend in capital efficiency
  • Only 10 analysts cover the stock with 1 SELL and 3 HOLDs (40% non-buyers), and thin coverage means less price discovery and liquidity support

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 20d ago
Headwinds 1
  • GST appeal rejected, penalty upheld May 13

    Additional Commissioner (Appeal), Kolkata rejected Vedant Fashions' appeal against a GST demand of ₹1,01,20,387 plus an equal penalty, upholding the original order.

Positives 1
  • FY26 revenue ₹14,355 Mn, dividend ₹7.75 May 8

    Vedant Fashions reported FY26 revenue of ₹14,355 Mn and net profit of ₹3,755 Mn. Board recommended a final dividend of ₹7.75 per share.

Neutral 2
  • Investor meet rescheduled to May 19 May 14

    Vedant Fashions rescheduled its virtual one-to-one analyst/investor meeting to May 19, 2026, filed under SEBI Regulation 30.

  • Q4FY26 analyst call audio released May 11

    Q4FY26 earnings call audio is now available alongside FY26 results showing revenue of INR 14,354.79 Mn and net profit of INR 3,755.43 Mn.

TL;DR: Vedant Fashions delivered steady FY26 results with ₹14,355 Mn revenue and ₹3,755 Mn net profit, signalling stable profitability. The GST demand rejection is a minor negative but the ₹1 Cr amount is immaterial relative to overall earnings. Shareholder returns remain healthy with a ₹7.75 dividend. The outlook is stable, with the upcoming May 19 investor meet likely to provide forward guidance on growth plans.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
336
311
218
474
363
240
268
511
367
281
263
492
399
Expenses
170
163
125
232
188
127
146
269
202
161
152
274
221
Operating Profit
166
148
93
242
175
113
122
242
166
121
111
218
179
OPM %
49%
48%
43%
51%
48%
47%
46%
47%
45%
43%
42%
44%
45%
Other Income
12
15
15
15
24
21
19
22
22
26
20
21
26
Interest
8
9
11
11
13
14
14
14
14
14
15
14
13
Depreciation
26
29
32
34
38
37
37
39
39
40
42
44
44
PBT
143
124
65
212
148
83
90
212
135
93
74
181
148
Tax %
25%
26%
25%
26%
22%
25%
26%
25%
25%
24%
24%
26%
23%
Net Profit
107
92
49
158
116
62
67
158
101
70
56
135
114
EPS in Rs
4.41
3.8
2.02
6.49
4.77
2.57
2.75
6.5
4.16
2.89
2.31
5.55
4.7
Figures in ₹ Crores

Profit & Loss

  Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
504
596
760
794
915
542
1,009
1,326
1,368
1,386
1,435
Expenses
354
423
526
521
517
307
528
668
709
744
807
Operating Profit
150
173
234
274
398
235
480
658
658
643
628
OPM %
30%
29%
31%
34%
44%
43%
48%
50%
48%
46%
44%
Other Income
2
3
10
19
32
58
49
37
70
85
94
Interest
6
5
6
4
25
25
27
30
44
55
56
Depreciation
7
8
10
8
82
89
88
97
135
153
170
PBT
139
164
229
280
323
178
414
567
548
520
496
Tax %
35%
35%
35%
35%
24%
27%
25%
25%
24%
25%
24%
Net Profit
90
106
149
182
245
131
308
423
414
388
376
EPS in Rs
76.04
89.43
11.94
14.56
19.57
10.55
12.7
17.42
17.05
15.99
15.46
Div. Payout %
13%
0%
0%
0%
20%
0%
39%
52%
50%
50%
50%
Figures in ₹ Crores

Balance Sheet

  Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
12
12
23
25
25
25
24
24
24
24
24
Reserves
221
317
683
865
1,051
1,075
1,060
1,371
1,578
1,762
1,940
Borrowings
22
9
13
0
234
204
263
293
444
483
458
Other Liabilities
109
154
221
257
281
320
402
473
462
477
431
Total Liabilities
364
492
940
1,147
1,591
1,623
1,749
2,161
2,508
2,747
2,853
Fixed Assets
104
141
316
252
482
446
495
518
663
688
660
CWIP
3
5
1
2
0
0
0
2
0
0
0
Investments
0
0
138
195
371
553
524
793
959
1,051
1,214
Other Assets
257
345
485
698
737
624
730
848
886
1,008
979
Total Assets
364
492
940
1,147
1,591
1,623
1,749
2,161
2,508
2,747
2,853
Figures in ₹ Crores

Cash Flow

  Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
—
37
52
179
251
253
341
459
483
389
481
Investing
—
-22
-279
-165
-106
-90
62
-228
-110
-16
-102
Financing
—
-16
224
-13
-138
-165
-406
-226
-362
-377
-386
Net Cash Flow
—
0
-4
1
7
-2
-3
5
12
-4
-6
Free Cash Flow
—
15
-94
173
238
263
352
464
484
388
470
CFO/OP
—
58
53
100
82
122
93
92
93
80
96
Figures in ₹ Crores

Ratios

  Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
78
115
155
155
156
247
143
130
151
163
166
Inventory Days
291
266
131
147
173
275
207
191
139
210
125
Days Payable
108
93
64
98
73
133
100
93
89
106
54
Cash Conversion Cycle
261
289
221
204
256
389
250
228
200
266
237
Working Capital Days
93
149
149
148
135
172
101
85
105
126
254
ROCE %
—
57%
44%
35%
31%
15%
33%
39%
31%
26%
24%

Shareholding Pattern

As of Mar 2026
Promoters 74.94%
DIIs 12.62%
FIIs 8.29%
Public 3.40%
Others 0.75%
Total 100.00%
  Sep 2021Feb 2022Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
92.50%
84.91%
84.91%
84.91%
84.91%
84.89%
84.88%
75.00%
74.99%
74.98%
74.97%
74.97%
74.96%
74.96%
74.95%
74.95%
74.95%
74.94%
74.94%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
6.67%
0.00%
8.13%
9.04%
9.53%
10.55%
10.14%
9.89%
9.76%
9.30%
8.29%
DIIs
0.00%
4.87%
8.36%
8.82%
9.30%
9.71%
9.88%
15.57%
14.89%
12.91%
12.64%
11.89%
11.57%
10.37%
10.59%
11.10%
10.95%
12.00%
12.62%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
0.00%
1.94%
1.27%
1.41%
1.58%
1.58%
1.43%
2.18%
2.40%
2.44%
3.06%
2.96%
2.82%
2.97%
3.09%
3.00%
3.33%
3.16%
3.40%
Others
7.50%
8.28%
5.47%
4.86%
4.21%
3.82%
3.81%
7.25%
1.04%
9.67%
1.19%
1.14%
1.12%
1.16%
1.23%
1.06%
1.02%
0.60%
0.75%
No. of Shareholders
0
7
93,696
61,220
51,892
57,587
63,439
68,261
74,737
74,379
92,083
83,644
75,719
71,971
73,545
75,621
80,698
81,852
84,119

Documents

Frequently Asked Questions about Vedant Fashions Ltd

What does Vedant Fashions Ltd do?
Vedant Fashions Limited caters to the Indian celebration wear market with a diverse portfolio of brands. The company offers its customers a one-stop destination for every celebratory occasion and the largest men's Indian wedding and celebration wear by revenue.VFL commands a dominant position in ...
Where is Vedant Fashions Ltd (MANYAVAR) listed?
Vedant Fashions Ltd is listed on the Indian stock exchanges. It is listed on NSE: MANYAVAR and BSE: 543463. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Vedant Fashions Ltd belong to?
Vedant Fashions Ltd operates in the Consumer Discretionary sector within the Retailing industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Vedant Fashions Ltd?
Vedant Fashions Ltd has a market capitalisation of approximately ₹10006.85 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Vedant Fashions Ltd?
The Price-to-Earnings (PE) ratio of Vedant Fashions Ltd is 26.71. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Vedant Fashions Ltd?
Over the past 52 weeks, Vedant Fashions Ltd has traded between a low of ₹329.2 and a high of ₹848. This range helps investors understand the stock's price volatility and recent trading levels.
Does Vedant Fashions Ltd pay dividends?
Yes, Vedant Fashions Ltd has a dividend yield of 1.94%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Vedant Fashions Ltd?
Vedant Fashions Ltd has a Return on Equity (ROE) of 25.86%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Vedant Fashions Ltd on Tapetide?
On Tapetide, you can view Vedant Fashions Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Vedant Fashions Limited caters to the Indian celebration wear market with a diverse portfolio of brands. The company offers its customers a one-stop destination for every celebratory occasion and the largest men's Indian wedding and celebration wear by revenue.VFL commands a dominant position in conventionally unorganized market segment.[1]

Website vedantfashions.com
Listed 2022-02-16
Face Value ₹ 1
Issued Size 24,29,73,103

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