VIP Clothing Limited (VIPCLOTHNG) AI Stock Analysis

• Market Cap: ₹2.81B
• Dividend Yield: N/A
• Average Volume (3M): 8.68K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 1.27
• Revenue Growth: 38.82%
• EPS Growth: N/A
• Country: IN
• Employees: 1,047
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.25
• 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: 62 Neutral
• Price Target: ₹38.00 ▲(20.44% Upside)

The overall stock score reflects strong financial performance driven by revenue growth and improved margins, despite challenges in cash flow and profitability metrics. Technical analysis indicates a neutral trend with potential bearish momentum, while valuation concerns arise from a high P/E ratio and lack of dividend yield.

Positive Factors

Revenue Growth

Strong revenue growth reflects increasing demand and effective market strategies, indicating a robust business model and market position.

Margin Improvement

Improved gross margins suggest better cost management and pricing power, enhancing long-term profitability potential.

Balance Sheet Stability

A stable balance sheet with manageable leverage provides financial flexibility and reduces risk, supporting sustainable growth.

Negative Factors

Cash Flow Challenges

Negative cash flow indicates potential liquidity issues, which could impact the company's ability to invest in growth and operations.

Low Profitability Metrics

Low ROE indicates inefficient use of equity, which may hinder investor confidence and long-term financial performance.

Operational Cost Challenges

Pressure on operating margins highlights inefficiencies that could affect profitability and competitiveness if not addressed.

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.

How the Company Makes Money

VIP Clothing Limited generates revenue through multiple channels, primarily through direct sales of its clothing and accessories via its online platform and physical retail stores. The company employs a pricing strategy that balances quality and affordability, attracting a broad customer base. Key revenue streams include seasonal collections, limited edition releases, and collaborations with influencers and fashion designers that create buzz and drive sales. Additionally, VIPCLOTHNG benefits from partnerships with various e-commerce platforms and social media marketing initiatives, which enhance its visibility and reach in the competitive fashion market. The company also explores wholesale opportunities with boutiques and larger retailers, further diversifying its income sources.

VIP Clothing Limited Financial Statement Overview

Summary

VIP Clothing Limited has demonstrated significant revenue growth and improved margins, transitioning to profitability in the latest year. The balance sheet is stable with manageable debt levels, but profitability metrics like ROE could be improved. Cash flow performance is a concern, with recent negative free cash flow, but past trends indicate potential for improvement. Overall, the company shows promising growth with some operational and cash flow challenges that need to be addressed.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.53B	2.38B	1.82B	1.99B	1.81B	1.42B
Gross Profit	709.60M	936.42M	202.08M	762.69M	258.07M	595.45M
EBITDA	213.40M	180.09M	-43.22M	204.88M	89.87M	48.84M
Net Income	74.43M	54.56M	-126.51M	66.37M	-22.13M	-10.46M
Balance Sheet
Total Assets	0.00	3.29B	2.71B	2.85B	2.85B	2.70B
Cash, Cash Equivalents and Short-Term Investments	7.13M	82.61M	44.64M	150.23M	48.46M	75.97M
Total Debt	0.00	823.07M	805.23M	886.13M	1.03B	925.64M
Total Liabilities	-1.85B	1.45B	1.32B	1.34B	1.51B	1.35B
Stockholders Equity	1.85B	1.85B	1.38B	1.51B	1.33B	1.35B
Cash Flow
Free Cash Flow	0.00	-379.82M	102.59M	128.89M	-53.37M	52.07M
Operating Cash Flow	0.00	-373.61M	104.29M	131.24M	-52.68M	57.96M
Investing Cash Flow	0.00	39.48M	-1.70M	110.76M	248.00K	-12.30M
Financing Cash Flow	0.00	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: Positive
• RSI: Neutral
• 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 below the 20-day moving average (MA) of 31.70, below the 50-day MA of 32.89, and below the 200-day MA of 36.40, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 38.04 is Neutral, neither overbought nor oversold. The STOCH value of 9.65 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	₹59.35B	18.39	―	1.07%	14.37%	12.68%
KKCL	66 Neutral	₹28.01B	21.57	―	0.41%	28.67%	-20.77%
VIPCLOTHNG	62 Neutral	₹2.81B	30.95	―	―	38.82%	―
MANYAVAR	62 Neutral	₹131.28B	34.06	―	1.37%	5.77%	-4.37%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RUPA	58 Neutral	₹12.85B	17.28	―	1.82%	0.78%	0.54%
VIPIND	54 Neutral	₹55.14B	-27.04	―	―	-12.59%	-328.41%

VIP Clothing Limited Corporate Events

VIP Clothing Limited Releases Q2 and H1 FY26 Investor Presentation

VIP Clothing Limited has released an investor presentation for the second quarter and first half of the fiscal year 2026, which is now available on their website. This announcement is part of the company’s compliance with regulatory requirements and aims to provide stakeholders with insights into its financial performance and strategic direction.