Neutral Vedant Fashions; target of Rs 1250: Motilal Oswal

About this update from Vedant Fashions Limited

Motilal Oswal's research report on Vedant FashionsVedant 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.OutlookThe 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 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 - 04 - 10-2023 - moti

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