Downgrades

With a 19% upside potential from the CMP, we maintain our BUY rating on the stock.

V-Mart Retail’s (VMART) revenue grew 17% YoY in 4QFY25, led by 8% SSSG and 12% store additions. EBITDA jumped ~70% YoY (in line) on account of gross margin improvement and lower losses in online segment.

V-Mart’s Q4 profitability improved, with a 272bps y/y higher EBITDA margin at 8.7% (~90bps above ARe), driven by lower Limeroad losses and better offline margins. FY25 sales/EBITDA grew ~17%/77% y/y, led by 11% SSSG.

Avenue Supermarts (DMART) posted weak results in 4QFY25 as standalone EBITDA inched up 4% YoY (9% miss) due to weaker gross margin (GM; -25bp YoY) and higher cost of retailing (CoR; opex up 12% YoY on a per sqft basis).

With a 24% upside potential from the CMP, we maintain our BUY rating on the stock.

Rs60-80bn fund infusion in FY26 given limited cash in balance sheet and long gestation of setting up stores (Land, building etc over 2.5 years). We cut EPS by 0.7/6.1/7.1% for FY25/26/27. We have DCF based target price of Rs3942 (Rs3958 earlier). However, the stock at 76xFY27EPS with 14% EPS CAGR over FY25-27, leaves little room for further re-rating. Retain Hold openings in 4Q25 to 28 stores taking the total addition to 50 stores, highest store...

Aditya Birla Fashion & Retail Limited’s (ABFRL) Q3FY25 performance was driven by festive and wedding demand, leading to better LFL growth of key businesses, while overall demand sentiments continued to be muted.

With a 6% upside potential from the CMP, we maintain our HOLD rating

Aditya Birla Fashion and Retail (ABFRL)’s revenue growth remained muted at ~3% YoY (in line) in 3QFY25. The growth was driven mainly by Ethnic and TMRW (to be part of demerged ABFRL), whereas growth remained muted in Lifestyle Brands (robust LTL offset by weak wholesale) and Pantaloons (shift in Pujo dates).

Trent Ltd (TRENT) delivered yet another robust quarter, albeit slightly weaker than our high expectations.