Retail player V-Mart Retail Ltd shares were in the red on Monday, July 28, after brokerages reiterated their bullishness on the consumer player after its positive earnings show for the June quarter.
For the April-June period, V-Mart Retail posted a net profit of Rs 34 crore, higher by 177 percent as against Rs 12 crore in the corresponding quarter in the previous financial year. Revenue from operations clocked in at Rs 885 crore, higher by 13 percent as against Rs 786 crore in the same period last year. Improved efficiency, rising inventory control, and stable demand boosted the earnings.
V-Mart reported slower SSSG in Q1FY26 due to a shift in festive calendar. However, the company achieved strong margin growth thanks to cost optimisation and seasonal benefits.
"Management anticipates a demand surge and improved momentum during this year's earlier festive season. Moreover, LimeRoad's (LR) losses significantly decreased YoY, contributing to the strong margin beat," noted Nuvama Institutional Equities. The brokerage maintained its 'buy' call, with a price target of Rs 1,148 apiece.
Domestic brokerage Motilal Oswal upgraded its rating on V-Mart to 'buy' with an increased target price of Rs 1,035 per share. "V-Mart remains a key beneficiary of the unorganized-to-organized retail shift and the massive growth opportunity in value fashion. However, with aggressive store expansion by many value retailers, rising competition in value retail remains a key watch," said the brokerage.
The brokerage added that the recent correction in the retail firm's share price (down 9 percent in the past month, down 20 percent year-to-date) makes the stock's valuations appear attractive.
HDFC Securities noted that the ongoing pursuit of market share gains may lead to more value being passed on to consumers, potentially limiting GM expansion from offline operations. However, the brokerage maintained its 'add' call, with a target price of Rs 830 per share.
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