Motilal Oswal's research report on Vedant Fashions
Vedant Fashions (VFL) delivered good quarter with revenue/PAT rising 23%/37% YoY (10%/21% beat) driven by strong SSS growth of 17% YoY, lower base (-12% YoY in 2QFY24), and a favorable shift in festive dates. Our estimates are broadly unchanged. We build in FY24-27E CAGR of 15%/17%/19% in revenue/EBITDA/PAT, mainly driven by footprint expansion and single-digit SSSG. Demand revival in 2HFY25 on account of the festive season and higher wedding dates remains a key trigger for re-rating. Reiterate Neutral with a TP of INR1,500, valuing the stock at 55x Dec’26E P/E.
Outlook
Demand revival in 2HFY25 on account of the festive season and higher wedding dates remains a key trigger for any re-rating. Reiterate Neutral with a TP of INR1,500, valuing the stock at 55x Dec’26E P/E (vs. 65x average LT 1-year forward P/E).
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Vedant Fashions_04112024_Motilal Oswal