V-Mart Retail (VMART)
CyclicalFairStock Score: 33/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹807.5 |
| Market Cap | ₹6,425.71 Cr |
| P/E Ratio | 46.95 |
| ROCE | 8.5% |
| ROE | 18.55% |
| Dividend Yield | 0.12% |
| Profit Growth | 40.51% |
| Debt/Equity | 1.01 |
| Sales Growth | 22.89% |
| Promoter Holding | 44.15% |
| 52-Week Range | ₹457.9 — ₹888 |
| Sector | Retailing |
| Book Value | ₹119.7 |
Strengths
- Profit growth of 25.13% and ROE of 18.55% show decent current earnings momentum.
- Piotroski F-Score of 7/9 suggests recent financial health despite leverage.
- Promoter holding of 44.15% aligns management interests with minority shareholders.
- Latest quarter net profit of ₹88 Cr on sales of ₹1,126 Cr indicates ongoing profitability.
Concerns
- Valuation is expensive: P/E 37.06, P/B 7.03, and PEG 2.13 leave little margin of safety.
- ROCE of 8.50% is low while D/E is 0.95, implying returns are heavily leveraged.
- Zero dividend yield makes the investment entirely dependent on future price appreciation.
- FairStock Score of 25/100 and the drop from ₹888 to ₹627.75 highlight elevated risk.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer