Vijay Kedia owned 3,000,000 shares or 1.83 per cent stake in Vaibhav Global at the end of the September quarter, the same as at the end of June quarter. This was the third quarter when Kedia kept his stake constant in the multi-national electronic retailer and manufacturer of fashion jewelry and lifestyle accessories.
Kedia’s stake in Vaibhav Global is worth Rs 211 crore at Wednesday’s market capitalisation of Rs 11,522.48 crore. Kedia has been holding this stock for at least the March quarter of 2017.
Kacholia, on the other hand, owned 2,250,000 shares or 1.37 per cent stake in Vaibhav Global at the end of September quarter. He has been holding about 1.4-1.5 per cent stake in the company at least since the December quarter of 2017. Kacholia’s stake is worth Rs 158 crore as of today.
On Wednesday, the stock was up 0.41 per cent at Rs 703.05 on BSE, off 34 per cent from its 52-week high of Rs 1,057.70 hit on May 10.
Yet, the scrip is trading at a 40 per cent premium over its 5-year PE average. It is trading at 89 per cent premium to its historical forward PE multiples and also 99 per cent premium over its 5-year average price-to-sales, as per data from Refinitiv.
The scrip has risen 1,038 per cent over the last five year-period.
In the last five quarters, Vaibhav Global has reported a 30 per cent plus profit growth in four.
Not many brokerages track this stock. Ambit Capital in August said Vaibhav Global’s ambitions in physical retail were dashed post the 2009 global financial crisis (GFC). Whilst liquidating inventory to minimise losses, the company discovered white space for low price casual jewellery.
“Since then it has invested in high inventory turn teleshopping albeit with high fixed costs. Over time, however, operating leverage from the same has played out (content/broadcasting down 1,100 bps over FY16-21 to 10 per cent) leading to 25 per cent plus RoCE. We believe this trend will continue (220 bps improvement in EBITDA margin to 17 per cent by FY24E),” Ambit said while initiating coverage on the stock.
