This Ashish Kacholia, Vijay Kedia-owned stock zooms 115% in 3 months

Ace investors Ashish Kacholia and Vijay Kedia held more than 1 per cent stake in the company as of the December quarter

Shares of Vaibhav Global hit a new high of Rs 4,513 after they rallied 8.5 per cent on the BSE in intra-day trade on Monday in an otherwise weak market. The company is an omni-channel e-retailer of fashion jewellery, accessories, and lifestyle products in developed markets with direct access to around 99 million households (FTE) through its TV home shopping networks – Shop LC in the US and Shop TJC in the UK.

In the past three months, the stock has zoomed 115 per cent after it reported a strong operational performance for the quarter ended December 2020 (Q3FY21). In comparison, the S&P BSE Sensex has risen 7.7 per cent during the same period.

In the past two weeks, the stock has rallied 27 per cent after the company said its board will meet on March 22 to consider the proposal for sub-division/split of the company's equity share having a face value of Rs 10 each to a lower denomination.

Generally, a company plans to go for a stock split to encourage wider participation of small investors and to enhance the liquidity of the equity shares at the stock market.

Ace investors Ashish Kacholia and Vijay Kedia held more than 1 per cent stake in the company as of December quarter. Vijay Kedia held a 1.94 per cent stake in the company while Ashish Kacholia held a 1.54 per cent stake as of December 31, 2020, shareholding pattern data shows.

In Q3FY21, the company’s retail revenues, earnings before interest, taxes, depreciation, and amortization (Ebitda) and profit after tax increased by 30 per cent, 37 per cent and 41 per cent, respectively on a year-on-year basis (YoY) resulting in a sustained margins expansion. The Ebitda margins improved 110 basis points (bps) to 17.4 per cent.

The capital-light model and low debt structure enabled higher return ratios as the firm reported ROE (return on equity) and ROCE (return on capital employed) at 30 per cent and 56 per cent, respectively on a trailing twelve months (TTM) basis. The company maintained the recent trend of quarterly dividends and announced a payout of Rs 7.50 per share, its third interim dividend for this financial year.