The stock of this apparel company soared to a 52-week high and reached a 5 percent upper price band, following a remarkable 353 percent increase in net profit quarter-over-quarter.
Price Movement
In Wednesday’s trading session, V2 Retail Ltd.’s share price soared to a 52-week high of Rs.936.45, up from its previous close of Rs.891.9.
Financial performance
With a market capitalization of Rs.3,237 crores, V2 Retail Ltd. reported consolidated revenue of Rs.415.03 crores for the quarter ending June 2024. This represents a 57.5 percent increase from Rs.263.6 crores in the same quarter last year and a 40.2 percent rise from Rs.296.03 crores in Q4 FY24.
Profit After Tax (PAT) also saw significant growth, rising by 162 percent year-over-year to Rs.16.33 crores in Q1 FY25, up from Rs.6.24 crores in the June 2024 quarter. Additionally, PAT increased by 353 percent compared to Rs.3.6 crores in Q4 FY24.
For the quarter ending June 2024, V2 Retail Ltd. reported stable financial ratios, with a Return on Capital Employed (ROCE) of 9.88 percent and a Return on Equity (ROE) of 9.94 percent.
The share price reflects an Earnings Per Share (EPS) of 7.89 and an Operating Profit Margin (OPM) of 13 percent.
Retail Presence
V2 Retail Ltd. has an extensive retail presence with 127 stores across 100 cities in 17 states. The company operates a substantial retail area, totaling approximately 13.64 lakh square feet.
E-Commerce
The company has established partnerships with major e-commerce platforms like Amazon and Myntra and has also launched its e-commerce portal, V2kart, to expand its sales channels. Despite these efforts, revenue from these sources has remained relatively modest in recent years.
Revenue Distribution
In terms of division-wise sales, V2 Retail Ltd. reported that Men’s wear constitutes the largest share at 38 percent, followed by Ladies’ wear with 27 percent. Kids wear accounts for 25 percent of the sales, while Lifestyle products make up 9 percent of the total sales.
Shareholder Composition
As per the shareholding pattern of June 2024, the Promoters hold a 54.3 percent stake in the company, Foreign Institutional Investors (FII) hold a 6.69 percent stake, while Retail Investors and Domestic Institutional Investors (DII) hold a 38.6 percent and 0.43 percent stake in V2 Retail Ltd., respectively.
Company Overview
V2 Retail Ltd operates primarily in the apparel and non-apparel sectors, offering a diverse range of products including lifestyle items, footwear, personal care products, and accessories.
The company markets its products under several brand names, such as Godspeed, Herrlich, Glamora, Ebellia, and Honey Brats, and sells through a wide network of stores across India, as well as online via its e-commerce platform, V2Kart.com.
Written by – Siddesh S Raskar
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