BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Vmart's Q4FY23 was below our estimates but in-line with street. Internals were healthy 17 (net 9) store additions, 10% SSSG, improvement in footfalls, better profitability from new and acquired Unlimited stores.
Vmart's recovery post covid has been lackluster, due to steep inflation and weak consumer sentiment, increase in competition from national players, impact of steep price increases by during covid which stands corrected etc. Acquisition of Lime Road (Q2FY23), investments in new warehouse (~Rs 1.5bn over FY22-23), technology spends and continued store expansion, though positive from a longer-term future proofing of business, these initiatives have accentuated the P&L and BS pain. That said, the concerns seem to have been factored in the price. As core business recovers and above initiatives deliver over medium-term, healthy performance is likely.
We decrease our revenue estimates by 5/2% and EBITDA by 16/2% over FY24/25E to factor the weak Q4FY23 performance and delay in recovery. Reiterate BUY with revised TP of Rs 3,200 @ 18x FY25E EV/E (earlier Rs 3,350 @ 18x FY25E)
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
