Consumer Products
|
Updated on 13 Nov 2025, 07:33 am
Reviewed By
Satyam Jha | Whalesbook News Team
V-Mart Retail showcased robust financial performance, achieving a 22% year-on-year revenue growth, boosted by an 11% increase in blended Same Store Sales Growth (SSSG), partly attributed to an earlier festive season. Profitability saw significant improvement, with approximately 335 basis points expansion in pre-IND AS EBITDA margin, driven by operating leverage, reduced advertising expenditures, and efficient inventory management. V-Mart Retail has raised its store addition guidance to around 75 stores, reflecting confidence in the value fashion segment. The company aims for mid-to-high single-digit SSSG and enhanced profitability through disciplined cost controls. Motilal Oswal reiterates its BUY rating on V-Mart Retail, setting a revised target price (TP) of INR 1,085, based on a multiple of 23 times its projected December 2027 EV/pre-IND AS EBITDA. Motilal Oswal considers V-Mart Retail a prominent investment idea within the retail sector.
Impact: This positive research report from Motilal Oswal is likely to boost investor confidence in V-Mart Retail. A strong BUY recommendation and a raised target price could lead to increased demand for the stock, potentially driving its share price higher. Investors often view such analyst reports as indicators of future performance and value. Rating: 8/10
Difficult terms: * SSSG (Same Store Sales Growth): This measures the percentage change in revenue for stores that have been open for a year or more. It indicates organic growth from existing stores. * EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a measure of a company's operating performance. * Pre-IND AS EBITDA: Earnings before interest, taxes, depreciation, and amortization calculated using accounting standards that were in effect before the adoption of Indian Accounting Standards (IND AS). * EV/EBITDA: Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization. It's a valuation metric used to compare companies within the same industry.