Motilal Oswal's research report on Vedant Fashions
Vedant Fashions (VFL) saw a weak quarter with revenue/PAT declining 12%/29% YoY (16% miss), owing to a shift in the festive period and reduced number of weddings. This resulted in sales to customer and same-store sales declining 8.2%/18% YoY, partially offset by 7% store additions. We have revised down our FY24/25E PAT by 5%, on the back of weak consumption trends, factoring revenue/PAT CAGR of 13%, led by footprint expansion.
Outlook
The rich valuations of 57.7x P/E on FY25E and concerns around demand revival leave limited upside potential. Subsequently, we downgrade the stock to Neutral, with a TP of INR1,250.
For all recommendations report, click here
Disclaimer: 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 - 04 - 10-2023 - moti