Neutral V-Mart Retail; target of Rs 1700: Motilal Oswal

Motilal Oswal recommended Neutral rating on V-Mart Retail with a target price of Rs 1700 in its research report date November 07, 2023.

Broker Research

November 10, 2023 / 14:18 IST

Neutral

26 Aug, 2025 12:21

Volume

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Motilal Oswal's research report on V-Mart Retail

V-Mart Retail (VMART)’s net loss widened YoY to INR641m (41% above our estimate), dragged down by soft revenue growth of 8.5% and losses in the Limeroad segment. VMART reported a 6% LFL decline despite volume growth as the quarter saw price moderation. Core revenue grew 5% YoY, driven by footprint adds, while revenue/sqft declined ~4% YoY. n We cut our EBITDA estimates by 31%/14% for FY24/FY25 and subsequently downgrade the stock to Neutral with a TP of INR1,700, given weak macro, intense competition and pressure in new formats, Unlimited and Limeroad. We expect a CAGR of 16%/14% in revenue/EBITDA. A demand recovery in 2HFY24 and trajectory of losses in Limeroad are key things to watch out for.

Outlook

Subsequently, we downgrade the stock to Neutral with a TP of INR1,700, premised on 10x EV/EBITDA on Mar’26E (15x EV/EBITDA on Pre-Ind AS116 basis). A demand recovery in 2HFY24 and trajectory of losses in Limeroad are key things to watch out for.

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