Vedant Fashions Ltd. IPO

Vedant Fashions Ltd. IPO - SWOT Analysis

Strengths:
With a vast network of EBOs, Multi-Brand Outlets (MBOs) and online presence, the company is well-positioned with a pan-India footprint. A growing operating profit over the years also indicates stable growth.

The company also has various products, including celebration wear, party wear, wedding wear and special occasion outfits. Its brand 'Mohey' also offers women's ethnic wear and kidswear. 

Apart from that, Vedant Fashions also has an active social media presence with a history of celebrity-figure endorsements and its tie-up with the IPL. Manyavar, its flagship brand, is a leading name in its segment, with good recall.

Weakness:
The company's Gross Current Assets have significantly risen after revamping its store format in 2017-18 to a franchise-owned and franchise-operated (FOFO) operation model.

Opportunities:
Thanks to rapid urbanisation and the young demographic, the demand for apparel is constantly growing. A keen fashion sense among the youth and rising disposable incomes are expected to drive sales.

For the ethnic wear brand, plenty of festivals and pent-up demand are key driving factors for revenue growth. 

Threats:
Vulnerable to Raw Material Supply:

Supply chain shocks tend to affect the textile industry as raw material supply becomes inefficient. 

Fashion choices are continuously changing, and keeping up with the general preference whilst ensuring a consistent brand image is a challenge for ethnic wear brands.