Vedant Fashions Limited (“VFL“) – leader in the Indian celebration wear market with flagship brand Manyavar, is expected to list on Wednesday, 16th February 2022 after a successful IPO which saw the QIB portion getting subscribed 7.49 times and an overall subscription of 2.57 times.
In the competitive landscape of the fashion industry, Vedant Fashions stands out with its noteworthy trailing twelve months (TTM) profit margins, surpassing industry peers. This financial prowess suggests a robust business strategy, contributing to its market leadership. As investors explore opportunities, Vedant Fashions’ superior profit margins make it a compelling choice, reflecting its resilience and potential for sustained growth in the dynamic fashion market.
Profit Margin Superiority
Vedant Fashions outperforms industry peers in trailing twelve months (TTM) profit margins, showcasing financial strength.
Competitive Edge
This higher profit margin indicates Vedant Fashions’ effective business strategies, providing a competitive edge in the dynamic fashion market.
Market Leadership
The company’s robust TTM profit margins contribute to its market leadership and solidify its position in the fashion industry.
Investment Potential
Investors may find Vedant Fashions appealing due to its superior profit margins, indicating potential for sustained growth and financial stability.
Resilience
Vedant Fashions’ ability to maintain higher profit margins reflects resilience and adaptability in the ever-evolving fashion landscape.
Strategic Positioning
The company’s financial strength positions it strategically, making it a noteworthy consideration for those seeking investment opportunities in the fashion sector.
With reference to the data available in the RHP, VFL’s calculated trailing twelve months (TTM) figures indicate revenue growth of 31% to Rs. 853 crore during the period ending September 2021 compared to Rs. 651.10 crore during the same period last year.
Although RHP mentions that there are no comparable listed peers, however considering the business segment that VFL operates in, Aditya Birla Fashion Retail Limited (ABFRL), Trent Limited, Metro Brands Limited and TCNS Clothing Company Ltd could be considered as close peers. Compared to the above peers, Vedant Fashions Limited indicate highest EBIDTA and PAT margin of 50% and 29% respectively during the trailing twelve months September 2021.
On Y-o-Y growth basis, VFL had EBITDA growth of 43.6% and PAT growth of 68%.
Conclusion
In conclusion, Vedant Fashions’ superior trailing twelve months (TTM) profit margins underscore its financial prowess and strategic positioning in the competitive fashion industry. This favorable financial performance suggests resilience and potential for sustained growth, making Vedant Fashions an attractive prospect for investors seeking stability and returns in the dynamic fashion market.