Vedant Fashions Limited

Consumer Cyclical — Apparel Manufacturing · NSE

₹523.00+₹10.80 (+2.11%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with modest growth. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Vedant Fashions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Vedant Fashions Limited engages in the manufacture, trading, and sale of wedding and celebration wear in India, Nepal, the United States, Canada, the United Arab Emirates, the United Kingdom, and internationally.

IndustryApparel Manufacturing

SectorConsumer Cyclical

Employees684

Annual revenue₹1,433 Cr

How does it make money?

Turns over ₹1,433 Cr a year. Of every ₹100 of sales, about ₹26 reaches shareholders as profit, with ₹47 left at the operating level before interest, tax and depreciation. Each of its 684 employees supports ₹2.10 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.10 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 22.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.1% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What is the outlook?

9 analysts covering the stock expect revenue to grow about 10.7% and earnings to grow about 11.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.7%

Est. earnings growth+11.3%

Analysts9

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +6% while net margin moved -17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+6%

Margin effect-17%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.9% — barely ahead of inflation
✗ Profit has declined at 4.3% a year

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

64/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

32.9x

3Y Median

47.6x

40 monthly readings · mean 50.6x · range 22.0x–84.2x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 3y median of 47.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 52% below the peer median of 69.2x.

vs. its own history

Cheap

47.6x median over 40 months · -31%

vs. sector peers

Cheap

69.2x median of 4 peers · -52%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.6x

PEG

2.21

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 22.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 30.7% to 19.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.3% to 22.3% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 56% over 3 years, from ₹293 Cr to ₹458 Cr.
🟡Margins are compressingFinancial
EBITDA margin is down 3.5 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 38% against revenue up 6% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 31% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹469 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 50.4% to 46.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 38% against revenue up 6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 1.9% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 30.7% to 19.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 45%✓ 46.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.9% CAGR
Latest reported year was 7.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹469 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹12,708 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.9x

Fair

Fairly valued against the generic band

P/B Ratio

6.46x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹15.88

Profitable

Profitable on a per-share basis

ROE

19.1%

Strong

Strong capital efficiency

ROCE

22.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

7.2%

Modest

Modest growth

Profit Growth (YoY)

14.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.48%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹469 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

28.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

29.5%

Good

Healthy core-business profitability

Net Margin

26.5%

Good

Strong bottom-line conversion

Current Ratio

3.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.06

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

519.8 / 537.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,353 Cr	₹1,365 Cr	₹1,384 Cr	₹1,433 Cr	+1.9%
EBITDA	₹681 Cr	₹676 Cr	₹671 Cr	₹671 Cr	-0.5%
EBITDA Margin	50.4%	49.5%	48.5%	46.8%	—
PAT (Net Profit)	₹429 Cr	₹414 Cr	₹388 Cr	₹376 Cr	-4.3%
EPS	₹17.68	₹17.04	₹15.98	₹15.45	-4.4%
ROE	30.7%	25.9%	21.7%	19.1%	—
ROCE	34.3%	27.8%	24.5%	22.3%	—
Total Debt	₹293 Cr	₹444 Cr	₹483 Cr	₹458 Cr	+16.0%
Free Cash Flow	₹465 Cr	₹479 Cr	₹385 Cr	₹469 Cr	+0.3%

🟡 Revenue has been broadly flat over 3 years (1.9% a year).

🟡 EBITDA has been broadly flat over 3 years (-0.5% a year).

🔴 EBITDA Margin has fallen from 50.4% to 46.8% over 3 years (-3.5 pts).

🔴 PAT (Net Profit) has shrunk at 4.3% a year over 3 years.

🔴 EPS has shrunk at 4.4% a year over 3 years.

🔴 ROE has fallen from 30.7% to 19.1% over 3 years (-11.5 pts).

🔴 ROCE has fallen from 34.3% to 22.3% over 3 years (-12.0 pts).

🔴 Total Debt has grown at 16.0% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (0.3% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,853 Cr

Total Liabilities

₹888 Cr

Cash & Equivalents

₹11 Cr

Operating Cash Flow

₹481 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

18.6%

Insider Holding

74.9%

Corporate Actions

Dividend Rate

₹7.75

Ex-Dividend Date

21 Sept 2026

Analyst Consensus

Recommendations

6 Buy · 3 Hold · 1 Sell

Target Price (Mean)

₹504

-3.6% vs CMP

Target Range

₹372 – ₹640

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive1 mixed4 general

MANYAVAR Stock Price and Chart — NSE:MANYAVAR

TradingView, 20 Aug

Results: Vedant Fashions Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Simply Wall Street, 29 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

26% Return In One Month: This Stock Jumped Over 5% In Trade. Here's Why

NDTV Profit, 05 Aug

Vedant Fashions Q1 net profit rises 15% on higher sales; Ravi Modi reappointed CMD

CNBC TV18, 25 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Compare with

Equitymaster, 16 Oct

Vedant Fashions Standalone June 2026 Net Sales at Rs 301.37 crore, up 7.17% Y-o-Y

Moneycontrol.com, 03 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Risk

MiddlingValuation

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑