Mehabe score: 6 G Factor: 6 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 6 and Piotski score of 6.
Description
Vaibhav Global Limited (VGL), through its distinctive business model, has created a niche for itself in the global retail space, especially in the jewellery, accessories and lifestyle product segments of two of the largest economies of the world – the US and UK. #
Main Points
Omni-Channel Retail Network
Company owns Shop LC for USA & Shop TJC for UK which are both 24 hour live shopping channels. It also owns proprietary web platforms tjc.co.uk & shoplc.com & has also launched applications of its retail platforms on smartphones. # Presently, about 67% of revenues comes from TV platform & the rest 33% revenues come from web platform.Site:VAIBHAVGBLMain Symbol:VAIBHAVGBL
Stock trades at 814.0, below its 50dma 814.49. However it is trading above its 200dma 649.91. The stock remains weak in the short term due to near term bearish momentum. However overall bullish structure remains intact. Price action will further build up as it moves above its dma50, currently situated at 814.49.
The 52 week high is at 1057.70 and the 52week low is at 249.81
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has delivered good profit growth of 47.54% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 27.74%
– has been maintaining a healthy dividend payout of 36.12%
Weakness
– Stock is trading at 13.79 times its book value
-Promoter holding has decreased over last 3 years: -8.15%
Competition
– The industry trades at a mean P/E of 24.6x. Titan Company trades at the industry’s max P/E of 157.52x. VAIBHAVGBL trades at a P/E of 48.9x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. VAIBHAVGBL has a G-Factor of 6 and Piotski scoreof 6.
– Average 1 month return for industry is 2.6%. The max 1- month return was given by Goldiam Intl.: a return of 29.4 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 666.0 cr compared to Rs 498.0 cr for period ended Mar 2020, a rise of 33.7%
Operating Profits reported at Rs 78.0 cr for period ended Mar 2021 vis-vis 56.0 for period ended Mar 2020 .
Operating Margins expanded 46.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.44 compared to Rs 5.68 for previous quarter ended Dec 2020 and Rs 2.46 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2540.0 cr for period ended Mar 2021 vis-vis sales of Rs 1986.0 cr for the period ended Mar 2020, a healthy growth of 21.8%. The 3 year sales cagr stood at 17.4%.
Operating margins expanded to 15.0% for period ended Mar 2021 vis-vis 13.0% for period ended Mar 2020, expansion of 200.0 bps.
Net Profit reported at Rs 272.0 cr for period ended Mar 2021 vis-vis sales of Rs 190.0 cr for the period ended Mar 2020, rising 30.1%.
Company recorded a healthy Net Profit CAGR of 34.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 326.0 cr for period ended Mar 2021 vis-vis Rs 214.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 32.0% compared to 28.0% over the last 3 Years. – The stock has given a return of 206% on a 1 Year basis vis-vis a return of 81% over the last 3 Years. – The compounded sales growth on a TTM bassis is 28% vis-vis a compounded sales growth of 17% over the last 3 Years. – The compounded profit growth on a TTM basis is 44% vis-vis a compounded profit growth of 35% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 11.64% vis-vis 11.18% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 10.89% vis-vis 9.95% for Dec 2020
Conclusion
– is almost debt free.
– has delivered good profit growth of 47.54% CAGR over last 5 years
– has a good return on equity (ROE) track record: 3 Years ROE 27.74%
– has been maintaining a healthy dividend payout of 36.12% – Stock is trading at 13.79 times its book value
-Promoter holding has decreased over last 3 years: -8.15%
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains below its 50 DMA 814.49 and is trading at 814.0. Shows a near term lack of buying interest.
