V-Mart Retail could sustain growth momentum in second half of FY25
Subscribe to enjoy similar stories. V-Mart Retail Ltd’s shares have put up a stellar show, more than doubling over the past year (up about 120%). Sure, it helped that the stock was beaten down around a year ago, hovering near its 52-week low of ₹1,741.70 on 13 December 2024.
Moreover, investors seem pleased with the signs of recovery in the company’s recent results and its improved outlook for the second half of FY25 (H2FY25). V-Mart is a value fashion retailer that focuses on tier 2 and tier 3 cities. “While demand in the urban Indian market is experiencing a slowdown, rural demand is on a comparatively better footing.
This is expected to aid sales of V-Mart, which is mainly concentrated in smaller towns," said Preeyam Tolia, analyst at Axis Securities. Also, reducing losses in online marketplace LimeRoad is a positive, he added. Also read: Pipeline expansion, tariff revision could be game-changers for Gail The September quarter (Q2FY25) marked the sixth consecutive drop in LimeRoad’s Ebitda loss to ₹7.3 crore, down 29% sequentially and 63% year-on-year.
V-Mart expects LimeRoad’s losses to keep falling quarter-on-quarter. The company aims to build a sustainable business model for LimeRoad that could improve the omni-channel capabilities of the entire V-Mart group. Lower LimeRoad losses, better sales growth, and reduced marketing spends helped V-Mart post better-than-expected Ebitda performance in H1FY25.
Footfall rose sharply, aiding 18% revenue growth and 13% same-store sales growth (SSSG), which isn’t bad at all. Also read: Metropolis Healthcare cashes in on rich valuation to acquire Core Diagnostics V-Mart remains focused on opening more stores and plans to add 55-60 in FY25. The company said closures of most
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