On Wednesday, the scrip plunged 9.03 per cent to hit a low of Rs 1,180 over its earlier day’s shut of Rs 1,297.20
Punchy valuations drive our downgrade to promote, mentioned Kotak Institutional Equities, which has a goal of Rs 1,075 for the inventory from Rs 1,000 earlier. That is even because the brokerage has raised its FY2023-25E EPS estimates by 5-10 per cent on account of robust momentum in wedding ceremony demand and better margin forecasts.
has downgraded Vedant Fashions to ‘maintain’, as a 25 per cent run-up in its shares since its initiation report “has lifted its valuation and capped near-term upside potential.”
Vedant Fashions, which acquired listed in February, has rallied 39 per cent over its concern worth of Rs 866.
The corporate has reported a 123.2 per cent YoY rise in internet revenue at Rs 100.90 crore from Rs 45.20 crore YoY, with revenue margin rising to 31 per cent from 28.2 per cent YoY. Income for the quarter rose 103 per cent YoY to Rs 325 crore from Rs 160 crore YoY.
“Baking in income outperformance (6 per cent) and better margins lifts our FY23 and FY24E EPS by 4 per cent every. Rolling over the valuation to 9MFY24E yields a goal of Rs 1,310. A notable discount in working capital and superior development trajectory (probably by way of Mohey) can be the triggers for an additional re-rating,” Edelweiss mentioned.
IIFL mentioned Vedant’s efficiency was robust in Q1, with secondary gross sales 60 per cent above pre-Covid stage as demand was robust throughout channels leading to larger footfalls and higher merchandise combine. Similar retailer sale (SSG) stood at 25 per cent YoY.
“Major gross sales development of 103.1 per cent YoY on a mushy base mirrored a quantity development of 102.3 per cent and ASP development of 1.4 per cent. Gross margin of 68.8 per cent was wholesome and administration expects FY23 gross margin to be within the vary of 66-67 per cent,” it mentioned.
The corporate plans to open standalone Mohey shops in FY23 on the again of optimistic tendencies of all key efficiency metrics of the model. “From being housed together with Manyavar format solely, progress in Mohey sits properly with our thesis of diversifying past Manyavar and might contribute materially within the development of Vedant,” IIFL mentioned.
This brokerage has upgraded its FY23/24/25 EPS estimate by 10 per cent, forecasting larger Ebitda margin of 49 per cent in-line with 50.2 per cent Ebitda margin posted in June quarter.
“We like VFL as it’s the class chief within the branded Indian wedding ceremony put on market with trade main margins and returns and maintains our Purchase ranking. TP is Rs 1,400,” IIFL mentioned. This goal suggests mere 8 per cent upside over Monday’s closing worth.
(Disclaimer: Suggestions, solutions, views, and opinions given by the specialists are their very own. These don’t symbolize the views of Financial Instances)