YES Securities' research report on V‐Mart Retail
After the recent run-up, we believe some correction can be expected in the near term with underlying demand still exhibiting weakness, competition not reducing significantly and some pressure on margins expected with normalization of costs and yarn inflation. While the medium to long term outlook remains strong with V-Mart expected to gain market share and successfully scale up its presence in new geographies, current valuations look rich.
Outlook
We would suggest waiting for corrections for fresh entry in the stock. The upcoming equity fund raise can also lead to some correction. We maintain our estimates for now with a TP of Rs 2,400 based on 40x FY23E earnings.
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