Motilal Oswal initiates Vedant Fashions coverage with "buy"

Vedant Fashions

31/03/2023 06:44

** Motilal Oswal initiates coverage on Vedant Fashions
 VEDN.NS  with a "buy" rating and PT of 1,400 rupees
    ** Stock up 3.7% at 1145.05 rupees 
    ** The ethnic wear retailer's scaling-up emerging brands and
catering to the sizeable women's celebration wear market can be
the key growth levers, brokerage says in a note 
    ** Brokerage expects co to report a PAT CAGR of 22% over
FY23-25, driven by 15% footprint additions
    ** Co's minimal capex requirements, attributed to the
franchise-funded growth and its strong profitability, are likely
to translate into healthy cash conversion cycle - brokerage
    ** Expanding brands 'Twamev' through up-selling and
'Manthan' to capture the value fashion segment could underpin
revenue growth moving ahead, it adds
    ** Six brokerages recommend "buy" or higher, 1 "hold" and 1
"sell;" median TP 1,352 rupees - Refinitiv data
    ** Vedant stock down 17.5% this year, as of last close 
    

 (Reporting by Aleef Jahan in Bengaluru)
 ((aleefjahan.cs@thomsonreuters.com))