Buy V Mart Retail, target price Rs 4690: ICICI Securities

ICICI Securities has buy call on V Mart Retail with a target price of Rs 4690. The current market price of V Mart Retail Ltd. is Rs 4041.65. Time period given by analyst is one year when V Mart Retail Ltd. price can reach defined target.
V Mart Retail Ltd., incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 7991.78 Crore) operating in Retail sector.

V Mart Retail Ltd. key Products/Revenue Segments include Income from Retailing and Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Standalone Total Income of Rs 342.04 Crore, up 88.02 % from last quarter Total Income of Rs 181.92 Crore and up 79.53 % from last year same quarter Total Income of Rs 190.52 Crore. Company reported net profit after tax of Rs -14.14 Crore in latest quarter.

Investment Rationale
The brokerage believes earnings of apparel brands and retail companies may surprise positively led by faster-than-expected demand recovery and expect consensus to turn more constructive with Q2FY22 management commentary. It maintains BUY with revised DCF-based target price of Rs4,690/sh (earlier: Rs4,170) on better cashflow. Key risks: Slower recovery in discretionary spends and increasing online competition.

Promoter/FII Holdings
Promoters held 46.44 per cent stake in the company as of 30-Sep-2021, while FIIs owned 22.12 per cent, DIIs 21.69 per cent.