India hosts around 10 million weddings annually, making it the second-largest wedding market globally. The industry ranks fourth in India, with an annual spending of $130 billion. Weddings also contribute to over 10 percent of the apparel industry’s revenue.
According to recent reports, the CAGR of the Indian wedding industry is estimated to be around 15-20 percent which signifies a rapidly expanding market driven by rising disposable income, growing demand for luxury services, and the popularity of destination weddings.
Price Action
The shares of Vedant Fashions Ltd, with a total market capitalization of Rs 18,670.02 Crores on Tuesday, were trading at Rs 768.5 per share which was 2.3 percent high from its previous closing price of Rs 751.20 apiece. The shares are currently trading at a discount of 49 percent from its 52-week high of 1,512 per share.
Financials
The company reported a 7.8 percent YoY growth in Revenue from Operations from Rs 474 Crores in Q3FY24 to Rs 511 Crores in Q3FY25. Their EBITDA and PAT showed flat growth YoY. Their EBITDA stood at Rs 242 Crores and PAT was at Rs 158 Crores in Q3FY25. The company continued to report an industry-leading Gross Margin of 67.3 percent and a PAT margin of 30.9 percent in Q3 FY25.
Also read: Bulk Deal: Microcap stock jumps over 4% after DII acquires ₹10 Cr worth of shares
Company Highlights
In Q3 FY25, retail footprint presence increased by 50k sq. ft. net retail area and total retail presence stands at 1.75 mn sq. ft. The Company has also rolled out 2 exclusive EBOs of Twamev Brand in the quarter. During Q3 FY25, Retail Sales grew by 9 percent as compared to Q3 FY24. The Company also witnessed sa trong recovery in Tier II and Tier III cities during this quarter.
Growth Strategy
The company plans for retail expansion within and outside India. Enhancing Brand appeal through targeted marketing initiatives along with up-selling and cross-selling initiatives. The company aims at significant potential and space for the growth of its emerging brands and takes on a disciplined approach to acquisition.
About Vedant Fashions Ltd
Vedant Fashions Limited manufactures, sells, and trades ethnic wear for men, women, and children. Their brands include Manyavar, Mohey, Mebaz, Twamev, and Manthan.Vedant Fashions has a significant retail footprint in India with over 650 stores covering 1.75 mn sq ft across various cities and towns. Internationally, they have stores in the United Arab Emirates, the United States, Canada, and the United Kingdom.
Written By Adhvaitha Nayani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
