Vaibhav Global Q1FY15 Results Report By Nirmal Bang

We continue to like asset light business model of VGL which can generate high ROCE and free cash. VGL has stabilized itself as a retailer of discount fashion accessories through TV channel in US and UK market with access to over 100 million households and also trying to monetize its TV channel through development of web sales. We expect VGL to report an EPS of Rs. 45.2 and Rs. 58.8 in FY15E and FY16E respectively. At CMP of Rs. 850, VGL is trading at a PE of 18.8x FY15E and 14.5x FY16E. On 16x FY16E earnings our target price comes to Rs. 925 per share. We maintain HOLD rating.

Vaibhav Global Q1FY15