Check Before You Invest : V-Mart Retail Ltd

BSE: 534976 NSE: VMART ISIN: INE665J01013

| Sector: Retail | Industry: Retailing

Snapshot

Q.1 Which industry/sub-sector does V-Mart Retail Ltd belong to?

V-Mart Retail Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q.2 Is V-Mart Retail Ltd a good quality company?

V-Mart Retail Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is V-Mart Retail Ltd undervalued or overvalued?

V-Mart Retail Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is V-Mart Retail Ltd a good buy now?

V-Mart Retail Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of V-Mart Retail Ltd?

V-Mart Retail Ltd revenue growth is 16.8% for FY-2025, which is above its 5-year CAGR of 14.38%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of V-Mart Retail Ltd?

V-Mart Retail Ltd Return on capital employed is 20.64% for FY-2025, which is above its 5-year historical median of 11.03%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of V-Mart Retail Ltd?

V-Mart Retail Ltd Return on Asset is 1.79%, which is above its 5-year historical median of -0.33%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of V-Mart Retail Ltd?

V-Mart Retail Ltd Return on equity is 5.99% for FY-2025, which is above its 5-year historical median of -0.94%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of V-Mart Retail Ltd?

V-Mart Retail Ltd Cash conversion cycle is 21 days, below its 5-year historical median of 56 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.27	1.02
ROE	5.99	-0.94
ROCE	20.64	11.03
Cash Conversion Cycle	21 days	56 days

Q.6 Gross Profit margin of V-Mart Retail Ltd?

V-Mart Retail Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.8% for FY-2025, which is in line with its 5-year median of 7.8%, indicating stable margins.

Q.7 Operating Profit Margin of V-Mart Retail Ltd?

V-Mart Retail Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.89% for FY-2025, which is in line with its 5-year median of 11.89% indicating stable margins.

Q.8 Net Profit Margin of V-Mart Retail Ltd?

V-Mart Retail Ltd Net Profit Margin is 1.41% for FY-2025, is above with its 5-year median of -0.32%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	7.8	7.8
Operating Profit Margin	11.89	11.89
Net Profit Margin	1.41	-0.32

Q.9 Debt to Equity ratio of V-Mart Retail Ltd?

V-Mart Retail Ltd Debt-to-Equity ratio is 0.19, which is lower with the industry average of 0.41, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of V-Mart Retail Ltd?

V-Mart Retail Ltd Debt to cash flow from operations is 0.43, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of V-Mart Retail Ltd?

Promoters hold 44.20% of the V-Mart Retail Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of V-Mart Retail Ltd vs industry peers?

V-Mart Retail Ltd revenue CAGR is 14.38%, compared to the industry median CAGR of 14.61%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	16.8	14.6
Gross Profit Growth	175	NAN
Operating Profit Growth	73.8	NAN
Net Profit Growth	0	14.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.27	1.14
ROE	5.99	7.96
ROCE	20.64	12.62
Cash Conversion Cycle (days)	21.38	48

Valuation & price assessment

Q.1 Stock return of V-Mart Retail Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	16.9%	-1.5%	4.6%	-26.8%

Q.3 Valuation ratios of V-Mart Retail Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	37.36	98.18	37.16
Price to Book	5.25	6.82	2.93
Price to Sales	1.36	2.12	1.30
EV to EBITDA	10.21	18.90	14.03

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