Shares of Vaibhav Global plunged 7% on Thursday’s intraday trades to reach a low of ₹ 297.50 apiece after the company’s results failed to cheer investors. At 02:08 PM, its shares were trading at 298.75 apiece, down 6.57%. 

Renowned investors Vijay Kedia and Ashish Kacholia hold a stake in the company. Vijay Kedia owns a 1.95% stake or 32,20,000 shares of Vaibhav Global, while Ashish Kacholia holds a 1.21% stake or 20,00,000 shares of the company. 

Vaibhav Global is a vertically integrated electronic retailer of fashion jewellery, home, beauty, lifestyle and essential products in two of the largest economies of the world – the US and the UK. 

On a consolidated basis, the company reported a measly 1.10% increase in its revenue from operations to ₹ 692.72 crores for the January to March quarter of 2023 (Q4FY23) from ₹ 685.18 crores reported in the corresponding period a year ago (Q4FY22). It reported a net profit of ₹ 7.05 crores in Q4FY23, against a net loss of ₹ 1.93 crores in Q4FY22. A challenging macro environment weighed on consumer sentiments. 

For the entire financial year (FY23), Vaibhav Global reported an 8.20% increase in its consolidated net profit to ₹ 36.17 crores against ₹ 33.43 crores in the previous financial year (FY22). The company’s revenue declined to ₹ 2,690.91 crores for the entire year (FY23), against ₹ 2,752.43 crores in the previous year (FY22). 

The company’s board has recommended a final dividend of ₹ 1.50 per share (face value Rs 2 each) making a cumulative dividend of ₹ 6.00 per share for FY23. 

“While the quarterly numbers were modest, our growth over pre-COVID period is encouraging at 39.2 percent which is a CAGR of 11.7 percent,” said Sunil Agrawal, Managing Director at Vaibhav Global. 

Further, he reiterated the firm’s earlier guidance and outlook for the business and remained confident about delivering 8-10 percent revenue growth in FY24. 

With a market capitalization of ₹ 5271 crores, Vaibhav Global is a small-cap company. It has an ideal return on equity of 22.74% and an ideal debt-to-equity ratio of 0.14. Moreover, it has a dividend yield of 1.87%. The company’s shares were trading at a price-to-earnings ratio (P/E) of 49.09, which is significantly higher than the industry P/E of 22.39, indicating that the stock might be overvalued as compared to its competitors. 

Written by Simran Bafna 

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