NSEI:VIPCLOTHNG

Stock Analysis Report

Executive Summary

VIP Clothing Limited manufactures, markets, and distributes garments in India.

Snowflake

Fundamentals

Fair value with acceptable track record.

Share Price & News

How has VIP Clothing's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VIPCLOTHNG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

VIPCLOTHNG

-1.4%

IN Luxury

0.5%

IN Market


1 Year Return

-77.1%

VIPCLOTHNG

3.2%

IN Luxury

5.6%

IN Market

Return vs Industry: VIPCLOTHNG underperformed the Indian Luxury industry which returned 3.2% over the past year.

Return vs Market: VIPCLOTHNG underperformed the Indian Market which returned 5.6% over the past year.


Shareholder returns

VIPCLOTHNGIndustryMarket
7 Day-3.1%-1.4%0.5%
30 Day18.2%-5.2%2.1%
90 Day-32.8%9.0%10.4%
1 Year-77.1%-77.1%4.0%3.2%7.6%5.6%
3 Year-80.3%-82.6%65.9%63.7%37.0%29.9%
5 Year-74.9%-78.0%101.7%97.9%39.6%27.0%

Price Volatility Vs. Market

How volatile is VIP Clothing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is VIP Clothing undervalued compared to its fair value and its price relative to the market?

8.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VIPCLOTHNG (₹7.8) is trading above our estimate of fair value (₹4.72)

Significantly Below Fair Value: VIPCLOTHNG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VIPCLOTHNG is good value based on its PE Ratio (8.9x) compared to the Luxury industry average (10.8x).

PE vs Market: VIPCLOTHNG is good value based on its PE Ratio (8.9x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VIPCLOTHNG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VIPCLOTHNG is good value based on its PB Ratio (0.3x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is VIP Clothing forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.6%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as VIP Clothing has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has VIP Clothing performed over the past 5 years?

-18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VIPCLOTHNG has high quality earnings.

Growing Profit Margin: VIPCLOTHNG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VIPCLOTHNG has become profitable over the past 5 years, growing earnings by -18.5% per year.

Accelerating Growth: VIPCLOTHNG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VIPCLOTHNG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Luxury industry (1%).


Return on Equity

High ROE: VIPCLOTHNG's Return on Equity (3.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is VIP Clothing's financial position?


Financial Position Analysis

Short Term Liabilities: VIPCLOTHNG's short term assets (₹1.9B) exceeds its short term liabilities (₹1.2B)

Long Term Liabilities: VIPCLOTHNG's short term assets (₹1.9B) exceeds its long term liabilities (380.4M)


Debt to Equity History and Analysis

Debt Level: VIPCLOTHNG's debt to equity ratio (44.8%) is considered high.

Reducing Debt: VIPCLOTHNG's debt to equity ratio has reduced from 88.3% to 44.8% over the past 5 years.

Debt Coverage: VIPCLOTHNG's debt is not well covered by operating cash flow (2.4%).

Interest Coverage: Insufficient data to determine if VIPCLOTHNG's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: VIPCLOTHNG has a high level of physical assets or inventory.

Debt Coverage by Assets: VIPCLOTHNG's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is VIP Clothing's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VIPCLOTHNG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VIPCLOTHNG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VIPCLOTHNG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VIPCLOTHNG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: VIPCLOTHNG is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VIPCLOTHNG's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of VIP Clothing's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

Sunil Pathare (48yo)

0.8yrs

Tenure

₹7,143,000

Compensation

Mr. Sunil Jaykumar Pathare, B.com, serves as Managing Director at VIP Clothing Limited. Mr. Pathare served as Managing Director of VIP Clothing Limited from July 2008 to February 12, 2016 and serves as its ...


CEO Compensation Analysis

Compensation vs Market: Sunil's total compensation ($USD99.39K) is above average for companies of similar size in the Indian market ($USD33.45K).

Compensation vs Earnings: Sunil's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.4yrs

Average Tenure

44.5yo

Average Age

Experienced Management: VIPCLOTHNG's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

14.5yrs

Average Tenure

60yo

Average Age

Experienced Board: VIPCLOTHNG's board of directors are seasoned and experienced ( 14.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Sunil Pathare (48yo)

    Chairman & MD

    • Tenure: 0.8yrs
    • Compensation: ₹7.14m
  • Kapil Pathare (40yo)

    Whole Time Director

    • Tenure: 16.2yrs
    • Compensation: ₹6.44m
  • Ashish Mandaliya (43yo)

    CFO, Compliance Officer & Company Secretary

    • Tenure: 4.4yrs
    • Compensation: ₹3.49m
  • Devendra Vyas (44yo)

    Chief Financial Controller

    • Tenure: 4.5yrs
    • Compensation: ₹3.66m
  • Amit Mhatre (45yo)

    Business Head of Sales

    • Tenure: 0yrs
  • Avadhoot Sansare

    Business Head - VIP

    • Tenure: 0yrs
  • Prashant Mulki (53yo)

    Business Head of Sales

    • Tenure: 0yrs
  • Suresh Kumar C. (43yo)

    Head of Quality Assurance

    • Tenure: 0yrs
  • Bhushan Patel (46yo)

    Business Head of Sales

    • Tenure: 0yrs

Board Members

  • Robin Banerjee (64yo)

    Non-Executive Independent Director

    • Tenure: 13.2yrs
    • Compensation: ₹100.00k
  • Sunil Pathare (48yo)

    Chairman & MD

    • Tenure: 0.8yrs
    • Compensation: ₹7.14m
  • Kapil Pathare (40yo)

    Whole Time Director

    • Tenure: 16.2yrs
    • Compensation: ₹6.44m
  • Chetan Sheth (56yo)

    Non-Executive Independent Director

    • Tenure: 15.8yrs
    • Compensation: ₹120.00k
  • Gopal Sehjpal (75yo)

    Non-Executive Independent Director

    • Tenure: 17.2yrs
    • Compensation: ₹120.00k
  • Meher Castelino (75yo)

    Non-Executive Independent Director

    • Tenure: 4.7yrs
    • Compensation: ₹120.00k

Company Information

VIP Clothing Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VIP Clothing Limited
  • Ticker: VIPCLOTHNG
  • Exchange: NSEI
  • Founded: 1971
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹654.990m
  • Shares outstanding: 82.60m
  • Website: https://www.vipclothing.in

Number of Employees


Location

  • VIP Clothing Limited
  • C-6, Street No. 22
  • MIDC
  • Mumbai
  • Maharashtra
  • 400093
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532613BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2005
VIPCLOTHNGNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2005

Biography

VIP Clothing Limited manufactures, markets, and distributes garments in India. The company offers innerwear and socks for men and women under the VIP, Frenchie, Feelings, Leader, and Eminence brand names.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 12:52
End of Day Share Price2019/11/20 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.