V-Mart Retail Ltd.

NSE: VMART | BSE: 534976 | ISIN: INE665J01013 | Industry: Department Stores
| Mid-range Performer
785.8000 -7.05 (-0.89%)
NSE Jul 08, 2025 15:31 PM
Volume: 108.1K
 

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V-Mart Retail Ltd.
08 Feb 2020, 07:37PM
785.80
-0.89%
HDFC Securities
1) Strong execution, 2. Insulation from an online onslaught and 3) inherent advantage within the ecosystem given the tail's precarious working capital position makes VMART our top pick in apparel retail. We revise our DCF-based TP upwards to Rs. 2,500/sh (earlier Rs. 2,150/sh). Revision is a function of 1. DCF roll-over to FY22, 2. 3/7% increase in FY21/22 EBITDA estimates to factor in better gross margins given the focus on full-price sell-through/fresh merchandise. V-MART continues to track strong growth, albeit expansion-led. SSSG print remains uninspiring (1%). What surprised us positively were higher margins, low SSSG notwithstanding. 1. Clockwork-like execution, 2. Higher full price sell-through, 3. Better merchandise sourcing margins courtesy vendor consolidation underpinned margin expansion. Store expansion remains tactical in existing Tier 1/2 catchments to tighten supply chain costs and in catchments with struggling peers (credit cycles running up for the latter) to gain market share.
Number of FII/FPI investors decreased from 137 to 130 in Mar 2025 qtr
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