On Wednesday, the share price of the small-cap company hit a 5 percent upper circuit of Rs 347.10 per share from its previous close of Rs 330.60 after the company announced the update at the end of Q3.
In the filling of V2 Retail Limited the company gave their standalone Revenue from operation rose by 56 percent from Rs 239.66 in Q3FY23 to Rs 373.73 in Q3FY24. Also, the company has achieved the highest-ever same-store sales Growth (SSG) of around 47 in Q3FY24 as compared to Q3FY23.
As of December 31, 2023, the total number of stores was 107. During the third quarter of fiscal year 2023-24, the company opened seven new stores and closed three. The total retail area on December 31, 2023, was 11.40 lakh square feet, up from 10.59 lakh square feet on December 31, 20221.
Looking at the company’s financials, their net revenue increased by 19 percent year over year, from Rs 194.51 crore in Q2FY23 to Rs 231.32 crore in Q2FY24. Their revenue fell by 12 percent sequentially from Rs 263.61 crore in Q1FY24 to the current levels.
In addition, the company’s net loss was reduced by 50 percent year over year, from a net loss of Rs 11.59 crores in Q2FY23 to a net loss of Rs 5.7 crores in Q2FY24. Their profit decreased by 191 percent on a quarterly basis from a net profit of Rs 6.24 crore in Q1FY24 to the current levels.
The share price of the company has risen by 166 percent in the last six months and 250 percent in the last year. For instance, if an investor invested Rs 1 Lakh a year ago the current value of the company would be Rs 3.50 Lakhs.
V2 Retail Ltd is a small-cap company with a market capitalization of Rs 1,200 crores. The firm has a low debt-to-equity ratio of 0.22 and has reduced its working capital requirement from 112 days to 88 days. However, the return on equity and net profit margin remain negative.
The company promoter owns 54.26 percent of the company, the general public owns 39 percent, foreign institutional investors own 6.36 percent, and domestic institutional investors own 0.37 percent.
V2 Retail Limited is a retail chain based in India. The Company operates in the retail trade of clothing, textiles, and accessories. The company has a product portfolio that includes apparel and lifestyle items. Northern and eastern India are the primary markets for the company.
Written by Sriram KV
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