V-Mart Retail: Surging Profits and Strategic Expansion Boost Stock Performance

By Aayush Khanna

V-mart Retail Ltd (NS:) witnessed a remarkable surge of over 15% to reach INR 2,416 on the NSE on 7 February 2024, following a robust 41% year-on-year increase in profit for the December quarter of the fiscal year 2023-24. The stock previously hit a 52-week high of INR 2,681 on 2 February 2024.

The company’s revenue saw a commendable 14% year-on-year growth, reaching INR 889 crore, while EBITDA witnessed a 15% rise from the previous year. Management attributed this growth to favorable festive demand, which bolstered footfalls by 23%, indicating an enhanced consumer sentiment.

Despite a 15.4% year-on-year increase in expenses to INR 865 crore, the company’s operational efficiency improved, marked by a 12% decrease in inventory from the last quarter. V-Mart expanded its footprint by opening 20 new stores while closing three, bringing the total operational stores in India to 454.

Foreign institutional investors increased their stake in V-Mart to 14.32%, and domestic institutional investors raised their holding to 34% in the December 2024 quarter. V-Mart’s distinctive focus on Tier-2 and 3 cities, with an average store size of 8,000 square feet, underscores its strategy in capturing niche markets.

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