Marcellus Investment Managers’ Little Champs PMS has exited V-mart Retail, the PMS revealed in its newsletter to investors. The exit comes after the PMS and Marcellus founder Saurabh Mukherjea backed V-Mart, shrugging off its underperformance.
In a newsletter dated on February 27, Little Champs Portfolio said it had exited V-Mart Retail along with Paushak and Home First Finance. According to the latest data provided by PMS AIF WORLD, Marcellus' Little Champs had a 4 percent stake in V-Mart Retail.
PMS Little Champs entered into V-Mart in 2020.
In a newsletter from July 2023, Marcellus said “V-Mart faced challenging times in FY23 due to weak demand as its core customers’ spending power were curtailed by rising inflation, while high fixed costs structure in retail business and investments in Lime Road business further impacted the Company’s bottom-line. We expect better times for V-Mart in FY24.”.
Saurabh Mukherjea in an interview with CNBCTV18 in November said V-Mart is impacted by the online plays and the management is aware of these challenges and working on them. He said he was hoping the company would get back some of its zing through the festive and wedding season.
Previously Marcellus Investment Managers exited Relaxo Footwears after Saurabh Mukherjea called Relaxo’s chappels (flip-flop) an 'instrument of enormous wealth creation'.
In its Q3 results, V-Mart’s net profit had risen 41.36 percent YoY to Rs 28.23 crore while the company’s revenue rose 14 percent YoY to Rs 889 crore.
Shares of V-Mart have struggled as they declined 5 percent in the previous month and around 18 percent in the last year.
Little Champs Portfolio also underperformed the benchmark BSE 500 return as the former made -.0.58 percent return in one month compared to latter’s 1.92 percent rise as of January 31, 2024. On one year basis also the fund underperformed as it made 0.17 percent return against 33.42 percent rise in BSE 500.
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