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Vedant Fashions Ltd (VFL), established in 2002 in Kolkata, is a leading player in India's celebration wear market, anchored by flagship brand Manyavar. Through its five brands Manyavar, Mohey, Twamev, Manthan, and Mebazthe company offers ethnic wear for men, women, and children. VFL operates 662 exclusive brand outlets (EBOs) across India and 16 EBOs in 12 global cities, spanning ~17.9 lakh sq. ft., with a presence across 26 Indian states...
We initiate coverage on ABLBL with BUY and Sep-26E TP of Rs170 (25x Sep27E pre-IndAS EBITDA). ABLBL owns a portfolio of India’s leading fashion brands, having recently de-merged from ABFRL.
Ethos’s Q4 EBITDA is in-line, with margin up by 80bps offsetting the 6% miss on revenue. Despite this, revenue growth was a decent 23%/25% in Q4/FY25, led by SSG of 17.4% in FY25 and by new store additions.
AVL’s Q3 EBITDA was 9-14% below street/our estimates, due to weaker gross margin in a sluggish demand environment. In the wake of significant growth moderation for the durable industry in Q3 (vs H1), AVL’s strong and in-line revenue growth of 23% marks a huge outperformance (13%/15% SSG in Q3/9M).
AVL’s Q2 EBITDA was 8% higher than our estimate, led by better gross-margin and cost savings. Q2 revenue growth at 20% (10% SSG) was healthy albeit moderated (vs Q1) due to preponement of the Shrad period and some demand temperance.
Ethos’s Q2 EBITDA was ~13% lower than estimate, led by a 250bps margin miss on account of INR depreciation and growth investments (higher store addition).
We visited Mohey EBO in Jayanagar, Bangalore to get first-hand insights on Vedant Fashion’s (VEDANT) ability to unlock value in women’s wedding and celebration wear market opportunity.
Ethos delivered 4% better EBITDA led by strategic curtailing of marketing spends. Despite operating challenges across the entire retail spectrum, Ethos has outperformed with strong 19% revenue growth.
Aditya Vision (AVL) reported a strong set of numbers, with 23% YoY revenue growth and 31% Ebitda growth which was above our estimates, while higher finance cost and tax lead to miss on Pat. The management mentioned they would be targeting 25-30 new stores in FY25 and increase presence in Jharkhand and UP.
AVL reported in-line EBITDA in Q4, although PAT was lower due to higher interest cost on slight delay in receipt of preferential proceeds. Q4/FY24 revenue grew 23%/32%, led by 6%/15% SSG.
