V Mart Retail Ltd., incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 6857.20 Crore) operating in Retail sector.
Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 181.92 Crore, down -48.93 % from last quarter Total Income of Rs 356.22 Crore and up 128.95 % from last year same quarter Total Income of Rs 79.46 Crore. Company reported net profit after tax of Rs -28.71 Crore in latest quarter.
Investment Rationale
The brokerage assigns a 23x FY23E EV/EBITDA multiple to arrive at our TP of INR3,920 (v/s INR3,880 earlier). Given the huge growth opportunity in the Value Fashion segment and V-Mart’s strong execution capability, it has the potential to garner 25–30% EBITDA/PAT growth sustainably for a prolonged period – backed by 20%+ revenue growth (SSSG + new store adds).
Promoter/FII Holdings
Promoters held 46.7 per cent stake in the company as of June 30, 2021, while FIIs held 23.4 per cent, DIIs 20.9 per cent and public and others 9.1 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
