MANYAVAR - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.0

📊 Core Financials Breakdown

Profitability

ROCE: 25.9% and ROE: 22.3% — excellent, indicating strong operational efficiency and shareholder value creation.

EPS: ₹16.3, with PAT declining from ₹101 Cr. to ₹70.3 Cr. — a 12.4% drop, suggesting seasonal or demand-related softness.

Debt-to-equity: 0.27 — low leverage, supporting financial resilience.

Dividend Yield: 1.10% — modest, but consistent for a consumer brand.

Institutional Sentiment

FII holdings declined (-0.26%), while DII holdings increased (+0.51%) — domestic investors show confidence despite foreign caution.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 44.6 In line with industry average (44.9) — fairly valued.

P/B Ratio ~9.89 Elevated, typical for high-margin branded apparel firms.

PEG Ratio 5.96 High — valuation stretched relative to earnings growth.

Intrinsic Value ~₹700–₹740 (est.) Current price of ₹727 is near fair value.

🧠 Business Model & Competitive Edge

Core Operations: Vedant Fashions Ltd. (MANYAVAR) is India’s leading ethnic wear brand, offering wedding and celebration apparel through brands like Manyavar, Mohey, Mebaz, and Twamev.

Strengths

Dominant market share in men’s ethnic wear.

Asset-light model with franchise-led expansion.

High brand recall and strong margins (EBITDA/Sales ~30%)

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Challenges

Recent earnings contraction and bearish technical indicators.

RSI at 42.4 — neutral to weak, MACD at -8.59 — bearish crossover.

Trading near 52-week low — potential value zone

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📈 Entry Zone & Technicals

DMA 50: ₹755, DMA 200: ₹869 — price is below both, indicating bearish momentum.

RSI: 42.4 — neutral zone.

MACD: -8.59 — bearish crossover.

📌 Entry Zone: ₹700–₹720 — ideal for accumulation if price stabilizes.

🕰️ Long-Term Holding Guidance

2025 Target: ₹850–₹1,000

2026–2028 Target: ₹1,200–₹1,400

2030 Target: ₹1,600+

Holding Strategy: MANYAVAR is a premium consumer brand with strong fundamentals, high margins, and scalable growth. Suitable for long-term investors seeking exposure to India’s wedding and celebration economy. Accumulate during technical weakness and hold through cycles.

You can explore year-by-year forecasts and technical levels on StockPriceArchive’s MANYAVAR page

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and review analyst sentiment on MarketScreener’s financial ratings

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www.marketscreener.com

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stockpricearchive.com

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