V-Mart Q4 Review - Visible Green Shoots Before Second Covid-19 Wave; Expect Swift Recovery: Motilal Oswal

Mannequins wearing leggings and shoes hang from the ceiling above clothing displayed for sale.  (Photographer: Patrick T. Fallon/Bloomberg).

V-Mart Q4 Review - Visible Green Shoots Before Second Covid-19 Wave; Expect Swift Recovery: Motilal Oswal

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Motilal Oswal Report

V-Mart Retail Ltd.’s revenue was up 6% YoY (8% beat), driven by pent-up demand for shopping.

The Ebitda beat was much stronger (99% beat), led by improving gross margins and cost measures.

We revise down our FY22 revenue/Ebitda estimates by 31%/33% due to the impact of the second wave, but maintain FY23 revenue/Ebitda estimates given the expectation of swift recovery.

The company’s strong cost leadership, lean balance sheet, and secular growth opportunity should keep it in good stead.

Click on the attachment to read the full report:

Motilal Oswal V-Mart Retail Q4FY21 Result Update.pdf

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