V2 Retail
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
V2 Retail's aggressive growth strategy, targeting a 50% revenue increase over the next two years through significant store expansion, is a key driver of its financial outlook. Management's commitment to opening 170-200 new stores in FY27 and around 250 in FY28, alongside investments in technology and supply chain infrastructure, positions the company to capitalize on the recovering retail market. However, while the company aims to maintain gross margins between 28-30%, the rapid expansion may stabilize sales per square foot and EBITDA margins in the near term. Vista's forecast reflects these dynamics, projecting moderate revenue growth and margin pressures, with a target price of approximately 391.91 over the next 12 months. The retail sector's recovery, supported by improving consumer demand and pricing power, further underpins V2 Retail's outlook. Key opportunities include the successful execution of store openings and enhanced operational efficiencies, while watchpoints involve managing working capital and potential geopolitical risks that could impact sales. Overall, V2 Retail's strategic focus on expansion and profitability aligns with Vista's positive long-term growth expectations
Why We Like This Stock
- Management's plan to open 170-200 new stores in FY27 and 250 in FY28 supports significant revenue growth
- Strong same-store sales growth and improved pricing power indicate healthy demand for V2 Retail's products
- Investments in technology and supply chain infrastructure are expected to enhance operational efficiency
Things To Watch Out For
- Rapid store expansion may lead to stabilized sales per square foot and EBITDA margins in the near term
- Increased Net Working Capital days pose liquidity and capital efficiency risks
- Geopolitical tensions could impact consumer demand and sales performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,165 | 1,884 | 3,060 | 3,497 | 4,760 |
| Profit Before Tax (Cr.) | 31 | 97 | 198 | 248 | 337 |
| PBT Margin | 2.6% | 5.1% | 646.6% | 7.1% | 7.1% |
| Net Profit (Cr.) | 31 | 69 | 145 | 184 | 250 |
| Earnings Per Share | 0.8 | 1.9 | 4.0 | 5.0 | 6.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Moneycontrol | ▲ Overweight | nan | 01-Jun-2026 |
| Motilal Oswal | ▲ Buy | 900 | 10-May-2026 |
Company Overview
Show Company Profile
V2 Retail Limited, together with its subsidiary, V2 Smart Manufacturing Private Limited, engages in the retail trade of apparel and garments, textiles, and accessories in India. It also manufactures apparel. The company engages in the retail sale of readymade garments, hosiery goods, and other articles of clothing and clothing accessories. It sells its products under the GODSPEED, Herrlich, Glamora, ebellia, Boady and Mind, and Honey Brats brands. The company was formerly known as Vishal Retail Ltd and changed its name to V2 Retail Limited in February 2012. V2 Retail Limited was incorporated in 2001 and is based in Gurugram, India.