Buy V-Mart Retail Ltd for the Target Rs. 1,035 by Motilal Oswal Financial Services Ltd
Pre-quarter update: Strong revenue print (+22% YoY)
* V-Mart’s 2QFY26 revenue grew 22% YoY to INR8.1b (~3% above our pre-quarterly estimate), driven by ~14% YoY store additions and a sharp recovery in blended SSSG to 11% (vs. 1%/8%/10% YoY in 1QFY26/ 4QFY25/3QFY25).
* SSSG for V-Mart (core) stood at 11% (vs. 1%/7%/10% in 1QFY26/4QFY25/3QFY25), while SSSG for Unlimited also came in at 11% (vs. 1%/10%/11% in 1QFY26/4QFY25/3QFY25).
* The calculated revenue per sqft grew ~9% YoY to INR1,797/sqft in 2QFY26.
* The company has opened 25 new stores (we estimate 19 V-Mart store openings and 6 Unlimited stores) and closed 2 stores during the quarter, bringing the total store count to 533 stores (23 net store additions in 2QFY26).
* We believe a strong 11% SSSG should lead to further margin expansion. Reiterate BUY.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
