MANYAVAR - Investment Analysis

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

Investment Rating: 4.1

👔 Fundamental Analysis of Vedant Fashions Ltd (MANYAVAR)

✅ Strengths

Exceptional Profitability

ROCE: 30.7%, ROE: 26.7% — elite capital efficiency, rare in retail

EPS: ₹16.6, with Qtr Profit Growth: +37.3% — strong earnings momentum

Reasonable Growth Valuation

PEG Ratio: 0.99 — fair valuation for growth

Stock P/E: 45.5 vs Industry PE: 47.6 — slightly undervalued relative to peers

Dividend Yield: 1.13% — modest but better than most growth stocks

Technical Setup

RSI: 34.9 — nearing oversold zone

MACD: -6.39 — bearish but may signal bottoming soon

⚠️ Concerns

High Valuation vs Book

Book Value: ₹62.9 vs Price: ₹754 — ~12x book, premium pricing

Weak Technical Trend

Price below both DMA 50 and DMA 200 — bearish structure

Volume below average — low conviction in current moves

FII Outflow: -0.26% — foreign investors trimming stake

52W Index: 5.98% — underperformance vs broader market

📉 Ideal Entry Price Zone

Entry Zone: ₹710–₹740

Near support and RSI reversal zone

Offers better risk-reward with valuation comfort

🧭 Long-Term Investment Outlook

Vedant Fashions is a strong long-term candidate, especially for investors seeking high-margin, brand-driven retail exposure. Its ROE/ROCE metrics are outstanding, and PEG ratio supports growth investing.

Holding Period: 3–5 years

Ideal for compounding through brand expansion and margin strength

Reassess if ROE drops below 20% or PEG rises above 1.5

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹880–₹950

Near DMA 200 and psychological resistance

Full Exit

If ROE falls below 18% for 2+ quarters

If PEG exceeds 2.0 without earnings acceleration

If price breaks below ₹700 and fails to recover

Reinvest: On dips near ₹710 if fundamentals remain strong

Would you like a comparison with other branded retail players like Trent, Aditya Birla Fashion, or TCNS Clothing to evaluate sector positioning?

Edit in a page