V-Mart Retail Ltd. share price target

While the third quarter is typically its best season, V-Mart Retail (VMART) reported a Q3FY21 revenue decline of 16% YoY to Rs 4.7bn due to continued Covid-19 headwinds.

We present key takeaways from our recent interaction with the V-Mart Retail management (VMART).

High Valuations Despite Increased Rural Demand and Market Share Gain Possibilities: Footfalls continue to be low as the textile industry continues to witness selectivespecific purchases based on needs in the current economic scenario.

We interacted with the V-Mart management to gain the latest insights on the developments and recovery in the Retail Apparel market. Here are the key highlights: Revenue recovery and a rise in footfall in lower tier cities have been better v/s metro cities. Thus, recovery in value retailers such as V-Mart is better v/s urbancentric retailers. We understand sales during the festive season were lower by ~20% YoY on an LTL...

Revenue declined 44% YoY (11% beat), better than other apparel companies. Strong cost control measures enabled it to achieve breakeven at the EBITDA level at -INR3m (est. INR32m loss). We increase our FY21E revenue/EBITDA estimates by 7%/2% on better than expected result. Further, we revise FY22E EBITDA up by 26% on gross...

V-Mart Retail (VMART) reported a Q2FY21 revenue decline of 44% YoY to Rs 1.8bn in a seasonally dull quarter compounded by the lockdown.

Key takeaways from our recent interaction with the V-Mart Retail management (VMART).

Battered by no meager stress in the retail fashion industry owing to large scale lockdowns nationally, V-Mart Mart posted 82.1% decline in revenues in the first quarter of FY21 the sharpest decline thus far. Business remained largely impacted in April and mostt parts of May with operational days at a dismal 2% and 22% respectively. Stress in discretionary consumer spend...

V-Mart Retail (VMART) reported a below-expected Q1FY21 revenue plunged 83% YoY to Rs 781mn as SSSg dropped 85% in a lockdown-hit quarter.