Vaibhav is a Global Retailer of Fashion, Jewellery, Accessories, Lifestyle, and Essential Product in Hime-Shopping Television and E-Commerce Platforms. It is Established in 1980 and 59 percent is owned by promoters of the company.
It sources its raw materials like gemstones from China, Thailand, and Bali. It has a Manufacturing and product development process in India. It carries out retailing mainly in the United States and the United Kingdom.
It has baskets of products like Bracelets, Bangles, Earring, Studded Jewellery, Watches, Handbags, Home Decor, Bed Linens, and beauty products.
They are basically Vertically Integrated and End to End B2C & B2B business models. They make 600 unique products and 100 new products each day. It generates 64 percent revenue from Television-based Sales, 31 percent revenue from Web Sales, and 5 percent from B2B sales.
SWOT ANALYSIS OF VAIBHAV GLOBAL LTD
STRENGTHS – It has a robust supply chain with a vertically integrated business model. It has a wide reach to customers through electronic media channels. It has developed uniqueness with each new product each day.
WEAKNESSES – It has huge exposure to foriegn exchange. It has also other factors which can influence their operations are raw material and price instability.
OPPORTUNITIES – It has Electronic retail segment growth(Target Audience). It has the potential to replicate business in other countries. It has improved marketing capabilities and digital marketing.
THREATS – It has now started witnessing new entrance of competitors and stiff competition from the rivals. Another factor that can be a cause of concern will be a huge spike in gemstones prices.
Vaibhav Global Ltd said on Monday it has positioned 132nd in the most recent Fortune India’s Next 500 List that incorporates most encouraging Indian organizations outside the Fortune 500.
The worldwide electronic retailer of designer gems, lifestyle and accessories items has climbed the positioning scale from 162 in the same rundown in 2018 to 147 out of 2019 and hopped 15 places this year to 132. Fortune India’s Next 500 top list positions India’s 1,000 biggest and best organizations. The Next 500 assemblage incorporates organizations that show the possibility to turn into the biggest companies in India.
Upheld by its dexterous gracefully chain, the organization has extended its item contributions to incorporate fundamental things like hand sanitizers, surgical and non-surgical masks, surface cleaners, food supplements, family basics products, and such.
Vaibhav Global is an electronic retailer of style adornments, frill, and way of life items in created markets with direct access to around 10 crore families through its TV home shopping systems – Shop LC in the United States and TJC in Great Britain.
Its TV stations arrive at clients straightforwardly on all the significant link, satellite and DTH stages – Dish TV, DirecTV, Comcast, Verizon Fios, Time Warner, AT&T, Sky, Virgin, Freeview, and Freesat.
In the second from last quarter of the current financial (Q3 FY20), the organization announced a net profit after tax of Rs 66 crore on a turnover of Rs 563 crore.
It’s considered as one of the rare organizations which make items in India and sell 100 percent in developed markets, for example, the United States and the United Kingdom. It contends with organizations that produce billions of dollars in income. This shows Vaibhav Global’s intrinsic quality and quality.
The organization has conveyed a profound incentive to limit looking for clients in design adornments and way of life items. The organization has extended its portfolio, concentrating on neighboring item classifications, for example, way of life extras, home materials, kitchenware, and makeup that target comparable market fragments.
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Despite two major falls in the most recent 10 years because of market vulnerabilities, helping the administration with new learning through this stage, Vaibhav Global despite everything stands tall, a discovery that will just assist them with moving towards a superior future.
Market pioneer QVC holds an income adding up to $12 billion, Vaibhav Global is littler in size that has created an income of Rs 1,575 crore. Its B2B section likewise supplies to QVC.
The quality of Vaibhav Global lies in the flexible chain that it has made throughout the years. The organization has a minimal effort of sourcing and supplies to contenders like QVC. In value rivalry, Vaibhav Global will have benefits over others. This likewise helps, as the organization approaches grassroots-level comprehension of patterns that are existing and up and coming in the market.
Vaibhav Global is controlling for twofold digit development for example through a 12 %-in addition to development, there are chances that its primary concern will develop at more than 40 percent. A Nasdaq share listing would have prompted an alternate valuation.
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It arrives at right around 100 million families through its TV Shopping diverts – ShopLC in the United States and The Jewelry Channel (TJC) in the United Kingdom.
The stock which hit a low of Rs 490 on March 24 had seriously jumped more than 150 percent to Rs 1,259 on June 25, 2020, which converts into a stock appreciation of 150% to date. The intensity of stock price zoomed has absolutely multiplied the stock in a brief timeframe yet high valuations and poor income development in coming quarters make market analysts mindful and encourage speculators to book profits as per their comfort.
Net Profit of Vaibhav Global rose by 22 percent on a Year-on-Year premise to Rs 39.74 crore for the quarter finished March 2020. Deals rose by almost 8 percent on a YoY premise to Rs 498.05 crore in a similar period.
“The stock is exchanging at a top-notch valuation now. Its operating profit additionally diminished Quarter-on-Quarter, where other pay expanded in the money related year of March 2020. The organization has steady development history and sensible obligation.
I am having a perception that the company seems highly ineffective in the case of asset management with high liquidity current ratio of 2.37%. My recommendation will be wise and logical to take away profits from the table at current levels and again re-enter at a lower price.
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And also another piece of recommendation that investors avoid fresh buying in Vaibhav Global at current levels. Retail investors who are holding stock from lower levels should opt for trailing stop loss to keep the pockets happy and new investors should get into this stock at a steep correction of around 30 to 40 percent from current levels.