V-Mart Q1 Results Review - LimeRoad Integration Continues To Hurt Profitability: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.V-Mart Retail Ltd. posted a net loss of 219 million (our estimate: net loss of Rs 2 million), primarily due to weak same-store sales growth and losses from Limeroad losses. These factors contributed to a significant 740 basis points reduction in Ebitda margin. Revenue growth for V-Mart (excluding LimeRoad and Unlimited) grew 15%, mainly driven by footprint additions.We have cut FY24E Ebitda by 28%, led by Rs 800 million Ebitda loss in LimeRoad and a prolonged recovery period. However, we maintain our FY25E Ebitda, as we anticipate a recovery in SSSG and the mitigation of losses of Rs 500 million in LimeRoad.We model a revenue/Ebitda compound annual growth rate of 18%/30% over FY23-25. We reiterate our 'Buy' rating with a target price of Rs 2,740 (based on 12 times enterprise value/Ebitda on March-25E)..Click on the attachment to read the full report:.V-Mart Q1 Results Review - Steady Revenue Growth; Margin Pressure Exacerbated By LimeRoad Losses: Systematix.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

V-Mart Q1 Results Review - LimeRoad Integration Continues To Hurt Profitability: Motilal Oswal

Net loss of Rs 219 million versus Rs 205 million net profit YoY (miss).

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