Buy V-Mart Retail; target of Rs 3020: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal's research report on V-Mart Retail

VMART’s EBITDA/PAT declined 23%/65% (big miss) in 3QFY23, affected by a sluggish demand recovery (sales per sqft at 19% below pre-Covid) and higher opex due to the integration of LimeRoad. We believe that muted demand in the value segment and incremental investments in the online vertical could keep profitability under pressure for the next four quarters. We lower our EBITDA/PAT estimates by 13%/18% for FY24 but expect a recovery by FY25E. We build in a revenue/EBITDA CAGR of 21%/27% over FY23-25. The recent reduction in RM costs is a silver lining, as it could be passed on to revive demand. We maintain our Buy rating.

Outlook

We maintain our Buy rating with a TP of INR3,020 (at 13x EV/EBITDA on Mar’25).

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V-Mart Retail - 08 -02 - 2023 - moti