VIP Clothing Limited (VIPCLOTHNG) AI Stock Analysis

• Market Cap: ₹1.56B
• Dividend Yield: N/A
• Average Volume (3M): 8.68K
• Price to Earnings (P/E): 76.6
• Beta (1Y): 1.29
• Revenue Growth: 38.82%
• EPS Growth: N/A
• Country: IN
• Employees: 1,047
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.10
• Shares Outstanding: 90,129,520
• 10 Day Avg. Volume: 11,210
• 30 Day Avg. Volume: 8,675
• PEG Ratio: -0.34
• Price to Book (P/B): 1.42
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -6.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹17.50 ▼(-44.53% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by weak technicals (price below all key moving averages and very low RSI/Stoch with negative MACD) and a demanding valuation (P/E 76.582). Financial performance is mixed: strong revenue growth and improved gross margin are positives, but low profitability metrics (2.29% net margin, 2.96% ROE) and recent negative free cash flow reduce confidence.

Positive Factors

Revenue Growth

Sustained 31% top-line growth indicates durable demand expansion and successful product or channel execution. Over a 2-6 month horizon this supports scale benefits, stronger negotiating power with suppliers, and a wider customer base that can underpin future margin and cash generation improvements.

Improved Gross Margin

A near 39.3% gross margin and move from loss to profit signal meaningful operational progress and better cost absorption. If sustained, higher gross margins create a structural buffer against commodity or wage inflation and provide operating leverage to turn revenue growth into durable earnings.

Manageable Leverage

A moderate debt-to-equity ratio and strong equity share give financial flexibility to fund working capital and capex without overreliance on external financing. This balance-sheet health supports investment in distribution or product lines and resilience through cyclical apparel demand swings.

Negative Factors

Low Profitability

Persistently thin net margins and low ROE constrain the company’s ability to generate shareholder returns and reinvest organically. Over months, this limits retained earnings for growth, makes performance sensitive to small cost or demand shocks, and weakens long-term capital efficiency.

Weak Cash Conversion

Failure to convert profits into operating cash creates a structural funding risk: capex, working capital, and debt servicing may need external financing. If operating cash flow remains weak, the company faces constrained investment capacity and greater sensitivity to credit conditions.

Margin Pressure at Operating Level

Operating margin compression indicates structural cost or efficiency issues limiting scalability. Even with revenue growth, sustained pressure on EBIT/EBITDA margins reduces free cash flow potential and makes profitability vulnerable to input cost inflation or weaker demand.

VIP Clothing Limited Business Overview & Revenue Model

Company Description

VIP Clothing Limited engages in the manufacture, marketing, and distribution of garments in India. It offers innerwear and socks for men and women under the VIP, Frenchie, Feelings, Leader, and Brat brands. The company operates through 550 dealer network and 110,000 retail outlets. VIP Clothing Limited also exports its products. The company was formerly known as Maxwell Industries Limited and changed its name to VIP Clothing Limited in October 2016. VIP Clothing Limited was founded in 1971 and is headquartered in Mumbai, India.

VIP Clothing Limited Financial Statement Overview

Summary

Strong revenue growth (+31.07% from 2024 to 2025) and improved gross margin (39.29%) with a shift from net loss to profit support the score. Offsetting this, net margin remains modest (2.29%), ROE is low (2.96%), and the latest period shows negative free cash flow driven by negative operating cash flow.

Income Statement

The company experienced strong revenue growth over the past year, with a remarkable 31.07% increase from 2024 to 2025. Gross profit margin improved significantly, reaching 39.29%. However, the net profit margin is modest at 2.29%, indicating room for efficiency improvements. The transition from a net loss to profitability is promising, but EBIT and EBITDA margins remain under pressure, suggesting operational cost challenges.

Balance Sheet

The balance sheet shows a stable equity base with a debt-to-equity ratio of 0.45, reflecting a manageable level of leverage. The equity ratio stands at 56.03%, indicating a solid equity position. However, the return on equity is relatively low at 2.96%, suggesting limited profitability relative to equity.

Cash Flow

The company has faced challenges with cash flow, reporting a negative free cash flow in the latest period, primarily due to negative operating cash flow. The operating cash flow to net income ratio is negative, highlighting potential issues in converting earnings to cash. However, the company has shown a history of positive free cash flow in prior years, suggesting potential for recovery.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.60B	2.38B	1.82B	1.99B	1.81B	1.42B
Gross Profit	711.86M	936.42M	202.08M	762.69M	258.07M	595.45M
EBITDA	239.42M	180.09M	-43.22M	204.88M	89.87M	48.84M
Net Income	88.74M	54.56M	-126.51M	66.37M	-22.13M	-10.46M
Balance Sheet
Total Assets	3.24B	3.29B	2.71B	2.85B	2.85B	2.70B
Cash, Cash Equivalents and Short-Term Investments	93.66M	82.61M	44.64M	150.23M	48.46M	75.97M
Total Debt	756.40M	823.07M	805.23M	886.13M	1.03B	925.64M
Total Liabilities	1.35B	1.45B	1.32B	1.34B	1.51B	1.35B
Stockholders Equity	1.89B	1.85B	1.38B	1.51B	1.33B	1.35B
Cash Flow
Free Cash Flow	176.84M	-379.82M	102.59M	128.89M	-53.37M	52.07M
Operating Cash Flow	176.95M	-373.61M	104.29M	131.24M	-52.68M	57.96M
Investing Cash Flow	-62.99M	39.48M	-1.70M	110.76M	248.00K	-12.30M
Financing Cash Flow	-115.43M	338.20M	-212.31M	-142.65M	22.87M	-21.42M

VIP Clothing Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VIPCLOTHNG, the sentiment is Negative. The current price of 31.55 is above the 20-day moving average (MA) of 19.18, above the 50-day MA of 23.51, and below the 200-day MA of 33.17, indicating a bearish trend. The MACD of -1.83 indicates Negative momentum. The RSI at 28.08 is Positive, neither overbought nor oversold. The STOCH value of 17.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VIPCLOTHNG.

VIP Clothing Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGBBROSLTD	76 Outperform	₹54.54B	16.13	―	1.07%	14.37%	12.68%
KKCL	66 Neutral	₹26.28B	22.08	―	0.41%	28.67%	-20.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MANYAVAR	61 Neutral	₹86.23B	26.22	―	1.37%	5.77%	-4.37%
RUPA	58 Neutral	₹9.86B	19.56	―	1.82%	0.78%	0.54%
VIPCLOTHNG	54 Neutral	₹1.56B	76.58	―	―	38.82%	―
VIPIND	54 Neutral	₹47.88B	-25.69	―	―	-12.59%	-328.41%