V-Mart Retail Limited
V-Mart Retail Limited is chain Retail small size hypermarket. In 2002 Lalit Agarwal founded this company. Previously it was incorporated as Varin Commercial Private Limited in West Bengal India. The main involved in value retailing of apparel with a minor presence in non – apparels (footwear, toys, home textile, and appliances, etc.) Most of the stores are located in tier – II, III and IV cities of India.
Key Business
- V-Mart Aspire -: This format caters to the young generation and the focus is to provide GEN X latest trends in fashion.
- V-Mart Plus -: These stores cater to all age group and serve the basic needs of customers and provide contemporary fashion as well.
- V-Mart Corporate -: These stores are targeted at customers from the age group 22 – 25 years and serve their contemporary fashion needs. The merchandies in these stories is specifically for office – going individuals, this line has been internally termed by the company as Gold Line Fashion.
- V-Mart Values -: These store cater to all age group formate on basic needs keeping in mind th economic status of the region where the store is situated.
Shareholding Pattern
- PUBLIC GROUP
- PROMOTER GROUP
Financial Summary
| Particulars | March 2023 | March 2022 | March 2021 |
| Sales | 2,465 | 1,666 | 1,075 |
| Sales Growth % | 47.93% | 54.93% | -35.29% |
| Expenses | 2,196 | 1,462 | 944 |
| Operating Profit | 269 | 204 | 131 |
| OPM % | 11% | 12% | 12% |
| Profit after tax | -7.85 | 11.64 | -6.19 |
| EPS in Rs | -3.97 | 5.89 | -3.15 |
Synopsis of Financials
- The Net Sales of the Company increased by 48% to Rs. 2,46,484 lakhs in the financial year 2022-23 as against Rs. 1,66,618 lakhs in F.Y. 2021-22.
- The Company has posted Operating Profits (EBITDA) for FY 2022-23 of ₹ 26,891 lakhs (FY 2021- 22 of ₹ 20,433 lakhs) and PAT/Loss for FY 2022-23 of ₹ (785) lakhs (FY 2021-22 of ₹ 1,164 lakhs).
Final Outlook
Considering the notable surge in public holdings, substantial growth in total assets, an expanding company market share, increasing revenue by 47%, and the current stock being traded at 39.6% discount compared to its 52-week high, I recommend considering a Buy of the stock.
- Robust sales growth: Over the past year, V-Mart’s revenue has increased by 47.93%, indicating a high sales growth in the store. This implies that the business is increasing its market share and reach.
- Profitability has increased recently for the corporation as well; over the past year, net profit has increased by -167.43%. It’s crucial to remember that this is still unfavorable.
- Good balance sheet: With minimal debt, V-Mart has a sound balance sheet. This provides the business with the financial freedom to fund expansion plans.
- Poor return on equity (ROE): V-Mart has not produced a satisfactory return on its shareholders’ equity over the last three years, as seen by its negative ROE.
- High valuation: Compared to the industry average, the company now trades at a price-to-earnings (P/E) ratio of about 43. This could indicate that the stock is overpriced.
- Competitive landscape: V-Mart confronts competition from well-established firms like Reliance Retail and Aditya Birla Fashion & Retail in the fiercely competitive Indian retail market.
