MANYAVAR - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.1

Let’s unpack Manyavar (Vedant Fashions Ltd.), India’s ethnic wear giant with a dominant franchise-led model. While the current price reflects recent bearishness, its core fundamentals and brand strength make it an attractive long-term candidate.

🧾 Core Financials & Profitability

ROCE: 30.7%, ROE: 26.7% — exceptional returns on capital, a sign of strong execution and pricing power

Debt-to-Equity: 0.30 — comfortably leveraged, but slightly higher than low-leverage peers

EPS: ₹16.6 — backed by healthy profit margins and cost discipline

Qtr Profit Growth: 37.3% — impressive, signaling demand recovery and operational efficiency

Dividend Yield: 1.13% — modest but meaningful for long-term investors

📊 Valuation Snapshot

Metric Value Verdict

P/E Ratio 45.5 Slightly below industry average (47.6); growth assumptions seem baked in

P/B Ratio ~11.99 High — reflects investor confidence in brand and franchise scalability

PEG Ratio 0.99 Fairly valued based on growth projections

🧵 Business Model & Strategic Edge

Flagship Brands: Manyavar, Mohey, Mebaaz, Twamev — all positioned in aspirational ethnic space

Distribution: Asset-light franchise model across 600+ EBOs and MBOs

Growth Levers

Increasing urban wedding and festive spends

Strong brand recall in Tier 1 and Tier 2 cities

Omni-channel focus with digital integrations

Risks

High valuation may deter fresh institutional entry

Seasonal and discretionary nature of ethnic wear demand

Slight dip in FII holdings (-0.26%) suggests caution in recent quarters

📉 Technical Indicators

RSI: 34.9 — near oversold zone; potential for reversal

MACD: -6.39 — current trend weak; still in bearish territory

Price Trends

Below both 50-DMA (₹794) and 200-DMA (₹922)

Near support zone at ₹706; volumes steady though slightly muted

🎯 Entry Zone & Holding Guidance

Entry Range: ₹720–₹740 — below key DMAs, attractive for contrarian play

12–18 Month Target: ₹880–₹940 — depending on festival season tailwinds and margin sustenance

Ideal for

Long-term investors betting on lifestyle & consumption trends

Medium-risk portfolios with brand-driven equity exposure

Less suited for aggressive short-term traders due to volatility

Would you like to dig into peer comparisons — say, with TCNS Clothing or Aditya Birla Fashion — to analyze margin cycles or brand penetration? Or maybe build a seasonality-adjusted earnings model to visualize Q2/Q3 revenue elasticity? I’m ready when you are. 👔📈

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