MANYAVAR - Perfect Rounding Bottom

3 Apr 2022

MANYAVAR

Vedant Fashions is engaged in manufacturing, trading, and sale of readymade ethnic wear for men, women and kids primarily in India.

• PE Ratio: 182.32
  
• PB Ratio: 22.20
  
• Sector PE: 1,245.48
  
• Sector PB: 6.10
  
• Sector Div Yld: 0.51%
  

Some Positives:

• Growth in Net Profit with increasing Profit Margin (QoQ)
  
• Company with Low Debt
  
• Strong cash generating ability from core business - Improving Cash Flow from operation for last 2 years
  
• Book Value per share Improving for last 2 years
  
• Company with Zero Promoter Pledge
  
• Near 52 Week High
  

Some Negatives:

• Companies with growing costs YoY for long term projects
  
• Inefficient use of capital to generate profits - RoCE declining in the last 2 years
  
• Inefficient use of assets to generate profits - ROA declining in the last 2 years
  
• Declining Net Cash Flow : Companies not able to generate net cash
  

My Opinion: The low liquidity is my only big concern. Otherwise the rounding bottom pattern is screaming BUY.

NOT A RECOMMENDATION. JUST FOR EDUCATION. Thanks.

6 Apr 2022

Trade aktif

Great move of 10 %. CMP 1100

4 Sep 2022

Catatan

04-09-2022: MANYAVAR CMP 1300.20