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V-Mart Retail stocks: Buy V-Mart Retail, target price Rs 3300: HDFC Securities

Securities has buy call on V-Mart Retail with a target price of Rs 3300. The current market price of V-Mart . is Rs 2828.9.

V-Mart Retail Ltd., incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 5584.57 Crore) operating in Retail sector.

V-Mart Retail Ltd. key Products/Revenue Segments include Income from Retailing and Other Operating Revenue for the year ending 31-Mar-2022.


For the quarter ended 30-09-2022, the company reported a Standalone Total Income of Rs 508.81 Crore, down -14.05 % from last quarter Total Income of Rs 591.97 Crore and up 48.76 % from last year same quarter Total Income of Rs 342.04 Crore. Company reported net profit after tax of Rs -11.31 Crore in latest quarter.

Investment Rationale
While V-MART remains among the stronger value fashion retailers within the ecosystem, profitability has been under pressure in the near term, courtesy Unlimited and overall footfall decline. The brokerage marginally cuts FY24/25 EBITDA estimates by 1% each. But maintain BUY rating with a DCF-based TP of INR3,300/sh (unchanged, implying 25x Sep-24 EV/EBITDA).

Promoter/FII Holdings
Promoters held 46.1 per cent stake in the company as of 30-Sep-2022, while FIIs owned 18.19 per cent, DIIs 31.51 per cent.

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