Buy V-Mart; target of Rs 4100: ICICI Direct
ICICI Direct is bullish on V-Mart has recommended buy rating on the stock with a target price of Rs 4100 in its research report dated July 27, 2021.
July 29, 2021 / 02:29 PM IST
ICICI Direct's research report on V-Mart
V-Mart, having over the years built its fortress in non-tier I cities, is well poised to capture market share in the growing ~Rs 2.5 trillion value fashion industry. The company enjoys strong moats that would provide an edge over increasing competition in tier III-IV regions. V-Mart follows a cluster based approach of adding stores within a radius of 50-100 km. This gives it better economies of scales, supply chain efficiencies and better understanding of fashion needs of the specific region The company, over the last two years, has expanded its reach in the interior parts of the country by opening stores in tier IV cities (~12% of total stores)
We continue to remain structurally positive and maintain BUY rating We value V-Mart at Rs 4100 i.e. 22x FY23E EV/EBITDA
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.