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Vedant Fashions Ltd. (VFL) caters to the Indian celebration wear market with diverse portfolio of brands including Manyavar, Mohey, Mebaz, Mathan and Twamev. VFL is the largest company in India in the men’s Indian wedding and celebration wear segment in terms of revenue in FY20. It offers a one-stop destinations and wide spectrum of product offering for every celebration occasion. The company’s Manyavar brand is a category leader in the branded Indian wedding and celebration bear market with a pan India presence. As per the company, VFL focus on spreading India’s vibrant culture, traditions & heritage through aspirational yet value for money brands at a diverse range of price points.
The company operates its business through franchise-owned exclusive brand outlets (EBOs), with the remaining by multi-brand outlets (MBOs), large format stores (LFSs), and online platforms, including its website (www.manyavar.com) and mobile application.
As of September 30, 2021, the company had a retail footprint of 1.2 Mn sq. ft covering 535 EBOs (including 55 shop-in-shops) spanning 212 cities and towns in India, and 11 EBOs overseas across the United States, Canada, and the UAE. Ravi Modi, Shilpi Modi and Ravi Modi Family Trust are the company promoters.
For year/ period ended ( in Cr.)
|Profit After Tax||132.9||236.6||176.4|
At the upper band of Rs. 866, the stock is valued at ~52x EV/EBITDA and ~160x P/E on FY21 figures. The company’s category advantage, industry-leading margins and return-ratios are positives. This profit-making company may surprise all post listing. Risk seekers may consider an investment with a long term perspective.