If EPS Growth Is Important To You, Veekayem Fashion and Apparels (NSE:VEEKAYEM) Presents An Opportunity
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Veekayem Fashion and Apparels (NSE:VEEKAYEM). Now this is not to say that the company presents the best investment opportunity around, but profitability is a key component to success in business.
Veekayem Fashion and Apparels' Improving Profits
Veekayem Fashion and Apparels has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. As a result, we'll zoom in on growth over the last year, instead. Veekayem Fashion and Apparels' EPS shot up from ₹13.01 to ₹17.06; a result that's bound to keep shareholders happy. That's a fantastic gain of 31%.
Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. EBIT margins for Veekayem Fashion and Apparels remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 14% to ₹3.6b. That's progress.
In the chart below, you can see how the company has grown earnings and revenue, over time. To see the actual numbers, click on the chart.
Check out our latest analysis for Veekayem Fashion and Apparels
Since Veekayem Fashion and Apparels is no giant, with a market capitalisation of ₹585m, you should definitely check its cash and debt before getting too excited about its prospects.
Are Veekayem Fashion and Apparels Insiders Aligned With All Shareholders?
Theory would suggest that it's an encouraging sign to see high insider ownership of a company, since it ties company performance directly to the financial success of its management. So those who are interested in Veekayem Fashion and Apparels will be delighted to know that insiders have shown their belief, holding a large proportion of the company's shares. In fact, they own 73% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. This should be seen as a good thing, as it means insiders have a personal interest in delivering the best outcomes for shareholders. Valued at only ₹585m Veekayem Fashion and Apparels is really small for a listed company. That means insiders only have ₹427m worth of shares, despite the large proportional holding. That's not a huge stake in absolute terms, but it should help keep insiders aligned with other shareholders.
It means a lot to see insiders invested in the business, but shareholders may be wondering if remuneration policies are in their best interest. Our quick analysis into CEO remuneration would seem to indicate they are. The median total compensation for CEOs of companies similar in size to Veekayem Fashion and Apparels, with market caps under ₹19b is around ₹4.1m.
Veekayem Fashion and Apparels' CEO only received compensation totalling ₹1.8m in the year to March 2025. You could consider this pay as somewhat symbolic, which suggests the CEO does not need a lot of compensation to stay motivated. While the level of CEO compensation shouldn't be the biggest factor in how the company is viewed, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. It can also be a sign of good governance, more generally.
Should You Add Veekayem Fashion and Apparels To Your Watchlist?
For growth investors, Veekayem Fashion and Apparels' raw rate of earnings growth is a beacon in the night. If that's not enough, consider also that the CEO pay is quite reasonable, and insiders are well-invested alongside other shareholders. This may only be a fast rundown, but the key takeaway is that Veekayem Fashion and Apparels is worth keeping an eye on. Still, you should learn about the 2 warning signs we've spotted with Veekayem Fashion and Apparels.
Although Veekayem Fashion and Apparels certainly looks good, it may appeal to more investors if insiders were buying up shares. If you like to see companies with more skin in the game, then check out this handpicked selection of Indian companies that not only boast of strong growth but have strong insider backing.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.