A steep correction in valuations makes this value retailer worth a second look
January 03, 2020 / 06:37 PM IST
Aditya Birla Fashion | The company will acquire 51 percent stake in Sabyasachi for Rs 398 crore.
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
V-Mart, a value retailer predominantly based out of tier-2 and tier-3 Indian cities, reported weak results in Q2 FY20. Nevertheless, store additions, steps taken for better inventory control and growing contribution of private label brands make us bullish on its prospects. The stock’s underperformance on the bourses provides a good entry opportunity.
The company derives 90 percent of its revenue from reasonably priced apparel and lifestyle products, whereas the balance 10 percent can be attributed to grocery items. It operates 255...