Ashish Kacholia, Vijay Kedia portfolio stock: Vaibhav Global shares drop 6% on muted Q4 results

Shares of Vaibhav Global plunged 6 per cent in Thursday's trade after the company reported a mere 1.96 per cent rise in March quarter profit at Rs 31.77 crore compared with Rs 31.16 crore in the same quarter last year, thanks to challenging macro environment that weighed on consumer sentiment.

This is even as sales for the quarter grew 13.58 per cent YoY to Rs 124.74 crore from Rs 109.82 crore in the corresponding quarter last year. PBIDT margin for the quarter improved to 29.37 per cent from 23.94 per cent.

Vaibhav Global is a global e-tailer of fashion jewellery, apparels, lifestyle products and accessories on TV and digital platforms.

Seasoned investor Ashish Kacholia held 20,00,000 shares, or 1.21 per cent stake, in this company as of March 31. Another known investor Vijay Kedia owned 32,20,000 shares or 1.95 per cent stake in the company at the end of March quarter.

The stock fell 6.22 per cent to hit a low of Rs 299.75 on BSE. Vaibhav Global shares hit a 52-week low of Rs 268.60 on March 29.

Managing Director Sunil Agrawal said that while the quarterly numbers were modest, growth over pre-Covid period was encouraging at 39.2 per cent, a CAGR of 11.7 per cent.

"The top line performance was in line with our guidance but could have been better given the continued macro environment weighing on the consumer sentiments. Amidst current macro challenges, our continued market share gain across territories demonstrates our ability to adapt and navigate headwinds. YoY improvement in Ebitda is on account of operational efficiencies and cost rebase initiatives," Agrawal said.

Agrawal said outlook remains positive. "I would like to reiterate our earlier guidance and outlook for the business and are confident to deliver 8-10 per cent revenue growth in FY24 and to deliver mid-teens revenue growth in subsequent periods with decent operating leverage," he said.

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