Buy Vedant Fashions; target of Rs 1600: ICICI Securities

About this update from Vedant Fashions Limited

ICICI Securities research report on Vedant FashionsWe visited Mohey EBO in Jayanagar, Bangalore to get first-hand insights on Vedant Fashion’s (VEDANT) ability to unlock value in women’s wedding and celebration wear market opportunity (which is ~5x higher than men’s wedding and celebration wear market in value terms). Highlights: (1) Scale-up over the last six months has been healthy, (2) competing strongly at mid-premium price point (ASP of INR 15k to INR 120k in lehenga), (3) specialist brand image retailer; it was the only retailer with bride-only outlet vs competition (offering bride and groom wear together) in the same locality. With the onset of macro tailwinds in rest of FY25 (number of wedding days), the business is poised for an acceleration (in our view). BUY.OutlookOur earnings estimates are unchanged; modelling revenue/EBITDA/PAT CAGRs of 17%/19%/20%, over FY24-FY26E. Maintain BUY with a DCF-based revised target price of INR 1,600 (was INR 1,300 earlier).For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Vedant Fashions - 24092024 - iscis

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