Rs 9/Share Dividend: Vedant Fashions Sets Record Date For 900% Payout

Vedant Fashions is a large-cap consumer discretionary company that recorded a market cap of Rs 30,060.09 Cr during Thursday's closing session. The company has declared a final dividend of 900% for FY23 and for the purpose of the same record date has been finalized.

Vedant Fashions Dividend

The Board of Directors of Vedant Fashions has recommended a final dividend of Rs 9/- per fully paid-up equity share of Rs 1/- each for the financial year ended March 31, 2023, subject to the approval of the shareholders at the ensuing Annual General Meeting of the Company.

While announcing the record date for the purpose of final dividend, Vedant Fashions informed stock exchanges on Wednesday that "The record date for the purpose of payment of Dividend would be Thursday, August 17, 2023. The Dividend, as recommended by the Board, if approved at the AGM, will be paid on or after Friday, August 25, 2023 to shareholders whose names are registered in the Company's Register of Members as the Beneficial Owners as per the lists to be furnished by NSDL and CDSL in respect of the shares held in electronic form, and whose names appear as Members in the Register of Members of the Company in physical form which are maintained with the Registrar & Share Transfer Agent (RTA), as at the end of business hours on Thursday, August 17, 2023."

Vedant Fashions Financials

During Q1FY24, the company reported revenue from operations of Rs 311.6 Cr down by 4.12% YoY from Rs 325 Cr in Q1FY23. Its net income stood at Rs 326.6 Cr during the quarter under review compared to Rs 332.1 Cr reported in the year-ago quarter. The company recorded net expenses of Rs 202.8 Cr during the quarter ended June 30 June 2023 compared to Rs 196.1 Cr reported in the corresponding quarter of FY23.

The consolidated net profit of Vedant Fashions stood at Rs 91.9 Cr during Q1FY24 down by 8.91% YoY from Rs 100.9 Cr reported in Q1FY23. Its EBITDA stood at Rs 148.7 Cr compared to Rs 165 Cr posted in the year-ago quarter while its EBITDA margin reached 47.7% in Q1FY24 as against 50.8% in Q1FY23. The company expanded the size of its retail presence by adding 85,000 square feet of net retail space in the first quarter of FY24, bringing it to 1.56 million square feet as of June 2023.

Vedant Fashions Share Price

On Thursday, the shares of Vedant Fashions closed on the BSE at Rs 1238.15 apiece up by 0.52% from the previous close of Rs 1231.80. The stock made a 52-week-high of Rs 1,501.00 on (06/10/2022) and a 52-week-low of Rs 1,058.45 on (28/03/2023). During Q1FY24, the company recorded promoter shareholding of 74.99%, FIIs stake of 6.27%, DIIs stake of 15.57% and public stake of 3.16%.

Vedant Fashions Share Price Target

Nirav Karkera, Head of Research, Fisdom said, " Vedant Fashions operates in a seasonal segment. Such seasonality is clearly visible through lower earnings on account of limited weddings in the period. While retail expansion is growing at a fast clip and could possibly offer benefits on account of enhanced operating leverage, the same-store sales growth rate has been disappointing. The business remains sensitive to seasonal demand and vulnerable to competition from peers operating in the organised as well as unorganised segment."

"On the weekly chart, MANYAVAR is trading within the rising channel pattern within the range of 140 - 160 points. On the daily time frame, the stock has formed a head & shoulder top formation whose breakdown can be expected at levels below 1200 levels. Similarly, on the weekly chart, prices are trading near the lower band of the pattern and marginally above the 50-week exponential moving average. Technically, the stock is in a make-or-break situation, where 1200 is an important support. If prices break below the said levels there could be a bearish breakdown of the pattern and on the higher side, 1350 - 1400 appear as levels of immediate resistance," said Nirav Karkera.

Om Mehra - Equity Technical Analyst, Choice Equity Broking said, "VEDANT FASHION has been moving in a broad range between 1200-1300 the past few days. Yet, the 1200 level has been regarded as a crucial zone, suggesting that the stock market is weak below these levels. The price has been at a crucial juncture. Even in the larger time frame stocks seem to be in a corrective phase. Stock is trading lower than 20 days, 50-day moving averages indicating a lack of buying interest among investors as well. Indicators MACD and RSI are currently skewed on the negative side. Only long-term investors may find that now is the best time to accumulate, and can even add more from lower levels as well."

Disclaimer

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