V-Mart Retail Q3 Results Review - Optimises Costs, Improves Metrics: Motilal Oswal

Motilal Oswal Report

V-Mart Retail Ltd.'s Ebitda/profit after tax grew 15.4%/41.3% YoY (beat) led by revenue growth of 14.4%, mainly supported by store additions and a recovery in same-store sales growth of 4%/5%/1% for Blended/V-Mart/Unlimited and narrowing losses in the Limeroad segment.

Strong cost control through cutting down losses in Limeroad and the closure of non-performing stores, along with improved SSSG, as indicated in our recent report, seemed to have played out in the company’s favor.

We expect a compound annual growth of 13%/14% in revenue/Ebitda over FY23-25. A demand recovery in the fashion category could be a key growth driver for V-Mart Retail.

We maintain our 'Neutral' rating with a target price of Rs 2,100.

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