Investment/Trade Idea in V-Mart Retail Ltd.(weekly Chart)
Buy @ CMP , Sl @ 1595 , Target @ 4000
Q4FY22 result:
V-Mart’s results were a mixed bag wherein revenue was below our estimates while profitability was better than anticipated.
On a favourable base, revenue grew 30% YoY to ₹ 458.8 crore. Newly acquired 74 Unlimited Stores in September contributed 16% to Q4 sales.
Gross margins improved 510 bps YoY to 34.9% owing to lower discounting and timely price hikes taken (~15-17%) to offset RM inflation. Higher employee and other expense due to integration of Unlimited format led to 140 bps expansion in EBITDA margins to 11.0%.
Higher depreciation and interest expense owing to integration of Unlimited business led the company to report a net loss of ₹ 2.6 crore.
Shareholding pattern (in %) Mar 23 Jun 23 Sep 23 Dec 23
Promoters 44.3 44.3 44.3 44.3
FII 14.2 14.8 14.3 14.3
DII 28.9 28.6 29.7 31.5
Others 12.6 12.3 11.7 9.8
N.B : I wanted to emphasize that the views I express are strictly personal and should not be construed as advice. It is crucial to consult with your financial advisor before making any trades or investment decisions. The complexity and unpredictability of financial markets underscore the importance of seeking professional guidance tailored to your individual financial circumstances and goals.
Q4FY22 result:
V-Mart’s results were a mixed bag wherein revenue was below our estimates while profitability was better than anticipated.
On a favourable base, revenue grew 30% YoY to ₹ 458.8 crore. Newly acquired 74 Unlimited Stores in September contributed 16% to Q4 sales.
Gross margins improved 510 bps YoY to 34.9% owing to lower discounting and timely price hikes taken (~15-17%) to offset RM inflation. Higher employee and other expense due to integration of Unlimited format led to 140 bps expansion in EBITDA margins to 11.0%.
Higher depreciation and interest expense owing to integration of Unlimited business led the company to report a net loss of ₹ 2.6 crore.
Shareholding pattern (in %) Mar 23 Jun 23 Sep 23 Dec 23
Promoters 44.3 44.3 44.3 44.3
FII 14.2 14.8 14.3 14.3
DII 28.9 28.6 29.7 31.5
Others 12.6 12.3 11.7 9.8
N.B : I wanted to emphasize that the views I express are strictly personal and should not be construed as advice. It is crucial to consult with your financial advisor before making any trades or investment decisions. The complexity and unpredictability of financial markets underscore the importance of seeking professional guidance tailored to your individual financial circumstances and goals.
Trade active:
bought @ cmp