Buy V-Mart; target of Rs 3310: ICICI Direct

ICICI Direct's research report on V-Mart

V-Mart, having over the years, built its fortress in non-tier I cities, is well poised to capture market share in the growing ~Rs 2.5 lakh crore value fashion industry. The company enjoys strong moats that would provide it an edge over increasing competition in tier III-IV regions. V-Mart follows a cluster based approach of adding stores within a radius of 50-100 km. This gives it better economies of scales, supply chain efficiencies and better understanding of fashion needs of the specific region.

Outlook

We maintain BUY recommendation on the stock with a revised target price. We value V-Mart at Rs 3310 i.e. 16x FY24E EV/EBITDA.