Vaibhav Global ~ Vertically integrated value e-tailer of Jewellery and Lifestyle Products

Stock looks interesting as a mean reversion play.

My analyst is also visiting their plant on 12th Jan , will share notes

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  2. Educational post only, not an investment advice
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Can anyone please throw some light on how to comprehend the valuation of the company. I understand that the seasonality angle, the deleveraging part and the growth. I also had the opportunity to visit the plant and meet the management recently and found the management quite clear in where they aspire the company to be. I also have no doubt in their execution capabilities looking at their post GFC revival story. It’s just that I am not able to understand how to value a company with this current valuation. Assumption: With a topline growth of 25% growth and 12% ebitda margins. Would the company still be just to be valued at this valuation. Kindly share your thoughts.

some notes posted on twitter from plant visit:

https://x.com/abhishekcjain/status/1746581934707499344?s=20

Model the FY25 revenue + margin. Model the EBITDA. The PAT. The acquisitions.

Disc: Invested, biased, might sell out if i can find a better opportunity.

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Margins mentioned are PAT margins or operation margins?


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So Japan and UK are Into theoretical Recession, since Vaibhav Global Operates In UK on The Retail Side, and from my knowledge if economies Fall into recession Govt Increases Rate of Lending that leads To less money in Hands of People, Hence less spending By People, Specially on Fashion Items People cut more of their Spending , so can anyone guide me how much will this Impact Vaibhav Global. If not Then also, please explain Why you feel that vaibhav will be resilient to this??

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earlier management has said that due to such economic situation, people tend to move from brands to low cost value provider like Vaibhav.

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Thanks For Quoting Management Thought Process about This situation, need to check some data points of Vaibhav particularly In UK Geography, whats the selling Price of Vaibhav VS competitors In UK and how come vaibhav Becomes cheaper option for Consumers in Times of Recession.