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Vedant Fashions
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Vedant Fashions Ltd was originally incorporated as Vedant Fashions Private Limited at Kolkata on 24 May 2002. Pursuant to a takeover agreement dated 01 June 2002, the business of a proprietorship firm by the name of 'M/s Vedant Creation', which was being carried out by one of the individual Promoters the company namely Ravi Modi, was transferred to the Company as a going concern. Subsequently, the Company was converted into a public limited company, pursuant to the approval accorded by the Shareholders at their extra-ordinary general meeting held on 16 July 2021. Consequently, the name of the Company was changed to Vedant Fashions Limited on 25 August 2021.
Vedanta Fashions is country's largest manufacturer of Indian vending and ethnic wear for men. The company is primarily engaged in manufacturing and trading of readymade garments being men's ethnic wear such as sherwanis, indo-western, kurtas, suits etc. and women's ethnic wear such as lehanga, saree, suit, kurti etc and related accessories.The company markets its products under the brand name of Manyavar, Mohey, Mebaz, Twamev and Manthan. The MANYAVAR brand is a category leader in the branded Indian wedding and celebration wear market with a pan-India presence,The company offer a one-stop destination with a wide-spectrum of product offerings for every celebratory occasion and aim to deliver an aristocratic yet seamless purchase experience to the customers through its aesthetic franchisee-owned exclusive brand stores.The company also focused in the women's Indian wedding and celebration wear market through its brand, Mohey, launched in 2015.
On 16 December 2006,the company has allotted 5262800 equity shares of Rs 10 each as bonus shares to the shareholders in the ratio of 1:2.
On 24 August 2017,the company has allotted 654237 equity shares of Rs 10 each at a premium of Rs 3429.12 per share to Rhine Holdings Limited on preferential basis.
Pursuant to a shareholders' resolution dated 22 November 2017, the Company sub-divided its share capital by sub-dividing the face value of its equity shares from Rs 10 per equity share to Rs 2 per equity share. Accordingly, by virtue of such split, with effect from 22 November 2017.
On 05 December 2017, the Company allotted 62557585 equity shares of Rs 2 each as Bonus Shares to the shareholders in the ratio of 1:1.
In FY 2017-18, Rainbow Iron & Steel Private Limited (Transferor) was amalgamated with the Company (Transferee) through the Scheme of Arrangement effective from 20 November 2018. On 21 December 2018, the Company made the allotment of 964,225 Equity Shares to Ravi Modi (HUF) and 8,678,025 Equity Shares to Ravi Modi Family Trust (acting through its trustee, Modi Fiduciary Services Private Limited), through Scheme of Amalgamation.
During February 2022,the company came out with an Rs 3149.19-crore public issue which was entirely an offer for sale(OFS) by promoters and investors.The IPO shares were allotted at the price of Rs 866 per share including a premium of Rs 865 per share.The allotted shares were listed on the BSE Ltd and National Stock Exchange of India Ltd(NSE) on 16 February 2022.
As of, Mar 31, 2022, the Company had a retail footprint of 1.3 million square feet covering 583 EBOs (including shop-in-shops) spanning across 223 cities and towns in India, and 12 EBOs overseas across the United States, Canada, and the UAE.
During FY 22-23, the number of Exclusive Brand Outlets (EBOs), increased and as of March 2023, the Company's EBO area stood at 1.47 million square feet, spanning 649 stores (including SIS) in 257 cities and towns globally. The national EBO footprint tally was at 633 stores (including SIS), spread across 245 cities and towns.
Vedant Fashions share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Vedant Fashions indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Vedant Fashions is valued compared to its competitors.
Vedant Fashions PE ratio helps investors understand what is the market value of each stock compared to Vedant Fashions 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Vedant Fashions evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Vedant Fashions generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Vedant Fashions in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Vedant Fashions shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Vedant Fashions compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Vedant Fashions over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Vedant Fashions helps investors get an insight into when they can enter or exit the stock. Key components of Vedant Fashions Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Vedant Fashions shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Vedant Fashions ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Vedant Fashions provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Vedant Fashions highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Vedant Fashions .
The balance sheet presents a snapshot of Vedant Fashions ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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