V-Mart Retail Limited - Steering ahead - 1QFY14 Results Review - Antique

V Mart's 1QFY14 performance was in line with expectations. Net sales grew by 33% to INR1.18bn while EBITDA and PAT grew by 25% and 36% to INR138m and INR72m. The sales growth was led by a same store sales growth (fashion) of 8% and same store volume growth (fashion) of 1.5%. Additionally the retail space addition of 1.37m sq ft YoY at 6.12m sq ft also led the sales growth (total stores currently at 79). Sales per square feet improved by 9% to INR734 during the quarter.

Valuation and Outlook

In view of the results being in line, we maintain our EPS estimates for FY14 and FY15 at INR15.6 and INR22.1. At the CMP of INR169, the stock is trading at a PE of 10.8x FY14e and at 7.6xFY15e. We maintain our target price of INR203, (implying EV/EBITDA of 5x and PE of 9x).

Source : Equity Bulls

Keywords