V-Mart Retail (VMART)

FairStock Score: 33/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹627.75, V-Mart Retail carries a market cap of ₹4,400 crore. I always start with returns on capital. The headline ROE of 18.55% looks good, but with debt/equity at 0.95 and ROCE only 8.50%, leverage is doing much of the work. A leveraged retailer earning just 8.5% on total capital in a competitive sector does not possess the moat I need. Sales growth of 9.71% is moderate, while profit growth of 25.13% is encouraging on the surface, yet the latest quarter shows a net profit of ₹88 crore on sales of ₹1,126 crore—an acceptable but thin retail margin. The company pays no dividend, so the investor is wholly dependent on capital gains. That is a problem at a P/E of 37.06 and P/B of 7.03. Even taking profit growth at face value, the PEG ratio of 2.13 suggests the market is paying a premium for growth that may not last. The Piotroski score of 7/9 tells me balance-sheet stress is not immediate, and promoter holding of 44.15% is reassuring. But the FairStock score of 25/100 is a warning, and the stock is down sharply from its 52-week high of ₹888, a reminder that high-priced expectations can unwind. In value investing, margin of safety matters. At this valuation, I do not see enough margin. Good business possibly, but the price is not right. I would wait for either a lower price or clear proof that ROCE improves materially before investing.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer