🧠 At a Glance

Vedant Fashions Ltd (Manyavar) is India’s undisputed king of wedding and celebration wear — but the bride (read: market) seems to be ghosting it. Despite elite margins, fat ROCE, and strong brand recall, the stock is down 47% from its peak and trading like a lehenga stuck in last season’s stockroom. What’s behind the cold feet?

🪢 1. Business Model – Shaadi Mein Zaroor Aana

• Vedant Fashions is the market leader in Indian men’s wedding wear — an otherwise unorganized sector.
• Brands under its portfolio:
  • Manyavar (men’s ethnic wear)
  • Mohey (women’s ethnic)
  • Mebaz, Twamev, and Manthan (multi-occasion/value segments)
• Asset-light strategy — 90%+ of retail outlets are franchisee owned, making margins look like Bigg Boss drama: exaggerated and juicy.
• Present in 250+ cities with over 600+ exclusive brand outlets.

🎉 This is not a “clothes company”. It’s a wedding economy play — and it absolutely nailed its niche.

📈 2. 5-Year Financial Recap – Sabya-Level Margins, Zara-Type Growth

📉 Sales CAGR (FY21–25): 27%
📉 Profit CAGR: 31% — impressive, but heavily skewed by Covid dip and FY22 bounce.

But here’s the twist…

• FY24 sales growth: just 3%
• FY25 sales growth: a measly 1.5%
• Net profit is falling, not rising

🥲 The margins are screaming designer, but the topline is walking like a government tender.

🧾 3. What’s Fashionably Right

✅ Elite Margins: 45–50% OPM for a retail company? That’s couture. Most clothing brands barely cross 20%.

✅ Asset-Light Model: Franchise model = scale without balance sheet risk. Only ₹688 Cr in fixed assets.

✅ Low Inventory Risk: Unlike ZARA or ABFRL, Manyavar styles don’t go “out of fashion” every week. Sherwanis don’t need a new design every Diwali.

✅ Strong Brand Recall: “Shaadi ho toh Manyavar ho” actually worked. It’s not just a slogan — it became a middle-class aspiration.

📉 4. What’s Tight Like a Too-Small Kurta

❌ Sales Plateaued: Growth has gone from Manyavar to Manthan. FY24 & FY25 sales are flat. Fashion fatigue?

❌ Customer Fatigue: Repetitive designs. Not much innovation. No “Virat Anushka” magic anymore.

❌ Inventory & Debtor Bloat: Working capital days rose from 130 to 350 in 2 years. That’s 350 days of waiting to get paid or sell stock.

❌ Valuation Hangover: At IPO, it was valued like a tech firm. Now it’s delivering Tier-3 mall footfall.

❌ Women’s Segment Weak: Mohey and Twamev haven’t scaled like Manyavar — female market still dominated by regional boutiques or giants like BIBA.

🛍️ 5. Peer Check – Retail Couture Comparison

🧨 Conclusion: Highest margins. But zero momentum.

🧠 6. Promoters & Capital Structure – Stable but Tightly Held

• Promoter Holding: 74.95% — solid and consistent.
• FIIs love it now: Up from 3.4% to 10.1% in 2 years.
• Dividend Payout: Consistently around 50%, yields ~1%.
• Debt: ₹483 Cr — manageable due to strong cash flows.

So the structure is fine. But the business is screaming for a makeover.

💸 7. Valuation – Is This Sherwani Worth ₹799?

• EPS FY25: ₹15.99
• CMP: ₹799
• P/E: 50x
• Book Value: ₹73.5 → P/BV: ~10.9x

📌 EduInvesting Fair Value Range:

⚠️ FV Range: ₹400 – ₹800

The market already gives it credit for high-margin, debt-light business. But with 1–2% sales growth? There’s no rerating fairy here.

🧵 Final Stitch: Is This Stock Wedding-Ready?

Vedant Fashions is an excellent business with poor momentum. High ROCE, brand value, and margins, yes. But when even the rich aren’t doing fat weddings, and your lehenga looks the same every year — your revenue won’t pop.

🧠 If you think the India Wedding Story 2.0 is coming (Tier 2+ expansion, women’s segment boom, NRIs returning) — this could be your shubh muhurat.

Otherwise, this sherwani is stuck on the clearance rack.

🏷️ Tags: Vedant Fashions, Manyavar, Shaadi stocks, Celebration wear market, Weddingwear brands India, Franchise model stocks, Retail India, EduInvesting Recap

✍️ Written by Prashant | 📅 20 June 2025