Motilal Oswal's research report on V-Mart Retail
V-Mart Retail (VMART)’s 4QFY23 EBITDA declined 54% YoY (a big miss) as the 30% YoY revenue growth was offset by lower GM and higher opex due to the integration of LimeRoad. The inflation-led demand impact within the value segment and incremental costs towards the recently acquired LimeRoad online business could drag profitability over the next couple of quarters as well. However, gradual recovery, footprint additions and improvement in Unlimited are likely to drive growth.
We model a revenue/EBITDA CAGR of 19%/31% over FY23-25. Reiterate BUY with a TP of INR2,375 (based on 11x EV/EBITDA on Mar’25E).
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