The shares of the small -cap retail fashion stock touched 5% upper circuit after Motilal Oswal Mutual Funds bought a 2.12% stake in the company.
Share price variations:
With a market capitalization of Rs. 4,232.7 crores, the shares of V2 Retail Limited hit its upper price band of 5% in NSE on Tuesday at Rs. 1,284.85 per share from its previous closing of Rs. 1,223.70 per share.
For investors, the stock has delivered impressive returns, rising over 200% in just six months and has soared by approximately 679% in the last 12 months, making it a true multibagger.
Reason for Rise:
The recent movement in V2 Retail Limited’s stock price appears to be influenced by Motilal Oswal Mutual Fund’s strategic acquisitions. By increasing its stake by 2.12% at an average price of Rs. 1,160.00 per share, along with a prior purchase of 1.17% in August, the fund now holds a total of 3.29% in the company.
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Financial Performance:
For Q1 FY25 the company reported a net profit increase of 222% to Rs. 15.86 crores compared to Rs. 4.92 crores in Q1 FY24, while revenue from operations marked an increase by 57% to Rs. 415.03 crores from Rs. 263.61 crores in comparison to the same period.
V2 Retail Limited generates approximately 38% of its revenue from men’s wear, 27% from ladies’ wear, 25% from kids’ wear, and 9% from lifestyle products.
About the company:
Incorporated in the year 2001, V2 Retail Limited is a fashion retail chain with its two manufacturing units in Noida & Bihar, operates across 17 states and around 100 cities with 127 stores.
It primarily operates in Tier-II and Tier-III cities, with a chain of retail stores offering apparels and general merchandise.
Also Read: Stock jumps 7% after it acquires UK based company Ascensos Ltd for ₹ 46.89 Cr
Written By: Joseph Pv
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