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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532867 | NSE: V2RETAIL

V2 Retail Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:16 pm

Market Cap 4,251 Cr.
Current Price 1,226
High / Low1,484/222
Stock P/E102
Book Value 83.5
Dividend Yield0.00 %
ROCE10.8 %
ROE10.6 %
Face Value 10.0
PEG Ratio1.39

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for V2 Retail Ltd

Competitors of V2 Retail Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Go Fashion (India) Ltd 5,740 Cr. 1,0641,408/93367.0 1210.00 %15.7 %14.6 % 10.0
7NR Retail Ltd 14.7 Cr. 5.2410.7/4.72 9.870.00 %3.31 %4.00 % 10.0
Vaibhav Global Ltd 4,475 Cr. 269543/26334.7 77.92.23 %14.0 %10.8 % 2.00
V2 Retail Ltd 4,251 Cr. 1,2261,484/222102 83.50.00 %10.8 %10.6 % 10.0
Trent Ltd 2,29,913 Cr. 6,4608,346/2,630169 1320.05 %23.8 %27.2 % 1.00
Industry Average46,429.00 Cr1,415.7579.1883.800.37%14.12%16.07%7.57

All Competitor Stocks of V2 Retail Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales83150239158211195240193264231374296415
Expenses82132199152190184202179228211313265360
Operating Profit118406221038143620613155
OPM %1%12%17%4%10%5%16%7%14%9%16%11%13%
Other Income9214112212311
Interest999910111091012121314
Depreciation15151514161618171818211921
Profit before tax-14-417-13-4-1512-108-831022
Tax %-22%-26%27%-27%-22%-25%26%-25%26%-33%25%-7,100%25%
Net Profit-11-312-10-3-129-86-624416
EPS in Rs-3.32-0.913.57-2.77-0.82-3.372.71-2.241.80-1.656.811.044.72

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 3:17 pm

MonthMar 2008Mar 2009Mar 2010Mar 2012Mar 2013Mar 2014Mar 2015Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales9531,3231,105421092292877015386298391,1651,316
Expenses8311,3261,565521082232586244885627531,0161,148
Operating Profit122-3-460-9152877506785149168
OPM %13%-0%-42%-21%1%2%10%11%9%11%10%13%13%
Other Income89-411122152316777
Interest39989187910333339424950
Depreciation2849473232515659677780
Profit before tax63-140-639-19-7-5189-15-15-173145
Tax %36%-33%-35%81%-26%-18%47%-1%-16%-21%-24%11%
Net Profit41-94-415-35-5-4109-13-12-132838
EPS in Rs18.14-42.19-185.42-15.55-2.35-1.934.132.57-3.76-3.40-3.738.0410.92
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2008-20092009-20102012-20132013-20142014-20152020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-329.27%-341.49%85.71%20.00%350.00%-244.44%7.69%-8.33%315.38%
Change in YoY Net Profit Growth (%)0.00%-12.22%427.20%-65.71%330.00%-594.44%252.14%-16.03%323.72%

V2 Retail Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2008-2009 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:18%
5 Years:%
3 Years:29%
TTM:58%
Compounded Profit Growth
10 Years:24%
5 Years:%
3 Years:61%
TTM:1834%
Stock Price CAGR
10 Years:38%
5 Years:62%
3 Years:94%
1 Year:431%
Return on Equity
10 Years:%
5 Years:%
3 Years:0%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:37 pm

MonthMar 2008Mar 2009Mar 2010Mar 2012Mar 2013Mar 2014Mar 2015Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital22222222222224343434343535
Reserves249155-256252247240250245235224213240254
Borrowings53175176657718469326396398424525649
Other Liabilities16115224611283962115148136123227388
Total Liabilities9631,0807783433683854057218137927931,0271,325
Fixed Assets209271222791418339395394408480631
CWIP21600101450004
Investments00033323130000000
Other Assets734803557303326340355378414398385547690
Total Assets9631,0807783433683854057218137927931,0271,325

Reserves and Borrowings Chart

Cash Flow

MonthMar 2008Mar 2009Mar 2010Mar 2012Mar 2013Mar 2014Mar 2015Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-197-6557-38-121235743598693
Cash from Investing Activity +-115-1085-1-4-7-67-20-16-12-39
Cash from Financing Activity +356133-6668-4-30-28-22-58-76-50
Net Cash Flow45-41-4-33-80-152-39-15-25

Free Cash Flow

MonthMar 2008Mar 2009Mar 2010Mar 2012Mar 2013Mar 2014Mar 2015Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-409.00-754.00-1,226.00-66.00-70.00-79.00-41.00-249.00-346.00-331.00-339.00-376.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2008Mar 2009Mar 2010Mar 2012Mar 2013Mar 2014Mar 2015Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days011400000100
Inventory Days36226664187207118141156308264184199
Days Payable333852911146063751341087092
Cash Conversion Cycle3292301310093587981174156114107
Working Capital Days19916313-262-59-32-27661311188880
ROCE %-5%-68%0%1%8%3%4%4%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters53.56%53.56%53.56%53.57%53.57%53.57%54.26%54.26%54.28%54.28%54.30%54.30%
FIIs6.40%6.44%6.40%6.47%6.40%6.40%6.37%6.36%6.36%6.57%6.69%0.80%
DIIs1.53%1.54%1.53%1.53%1.53%1.91%0.37%0.37%0.37%0.36%0.43%4.34%
Public38.51%38.46%38.51%38.45%38.51%38.13%39.00%39.01%38.99%38.80%38.60%40.57%
No. of Shareholders20,16019,49319,51319,74419,72919,59718,63417,32416,16616,24416,86224,101

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Large and Midcap Fund784,8001.61104.7784,8002024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)8.04-3.73-3.40-3.772.57
Diluted EPS (Rs.)8.04-3.73-3.39-3.762.57
Cash EPS (Rs.)30.2215.7713.7112.5117.52
Book Value[Excl.RevalReserv]/Share (Rs.)79.4271.8075.0878.7881.86
Book Value[Incl.RevalReserv]/Share (Rs.)79.4271.8075.0878.7881.86
Revenue From Operations / Share (Rs.)336.73243.94182.97157.94205.61
PBDIT / Share (Rs.)44.9026.3623.4220.9722.68
PBIT / Share (Rs.)22.726.866.314.697.73
PBT / Share (Rs.)9.07-4.93-4.32-4.482.54
Net Profit / Share (Rs.)8.04-3.73-3.40-3.772.57
NP After MI And SOA / Share (Rs.)8.04-3.73-3.40-3.772.57
PBDIT Margin (%)13.3310.8012.8013.2711.03
PBIT Margin (%)6.742.813.452.963.76
PBT Margin (%)2.69-2.02-2.36-2.831.23
Net Profit Margin (%)2.38-1.52-1.85-2.381.25
NP After MI And SOA Margin (%)2.38-1.52-1.85-2.381.25
Return on Networth / Equity (%)10.12-5.19-4.52-4.773.14
Return on Capital Employeed (%)11.434.003.762.754.73
Return On Assets (%)2.70-1.61-1.47-1.571.21
Long Term Debt / Equity (X)0.060.020.021.150.98
Total Debt / Equity (X)0.330.210.211.461.17
Asset Turnover Ratio (%)1.281.060.790.710.00
Current Ratio (X)1.431.591.591.561.89
Quick Ratio (X)0.190.230.230.260.56
Inventory Turnover Ratio (X)0.330.180.000.000.00
Interest Coverage Ratio (X)3.292.242.202.292.56
Interest Coverage Ratio (Post Tax) (X)1.590.680.680.580.87
Enterprise Value (Cr.)1534.05284.47551.97798.94434.22
EV / Net Operating Revenue (X)1.320.330.871.480.61
EV / EBITDA (X)9.883.146.8511.175.61
MarketCap / Net Operating Revenue (X)1.250.280.800.790.25
Price / BV (X)5.290.951.961.600.63
Price / Net Operating Revenue (X)1.250.280.800.790.25
EarningsYield0.01-0.05-0.02-0.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of V2 Retail Ltd as of November 21, 2024 is: 920.86

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, V2 Retail Ltd is Overvalued by 24.89% compared to the current share price 1,226.00

Intrinsic Value of V2 Retail Ltd as of November 21, 2024 is: 1,596.85

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, V2 Retail Ltd is Undervalued by 30.25% compared to the current share price 1,226.00

Last 5 Year EPS CAGR: 73.41%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
    1. The stock has a low average ROCE of -3.50%, which may not be favorable.
    2. The stock has a high average Working Capital Days of 39.83, which may not be favorable.
    3. The stock has a high average Cash Conversion Cycle of 127.83, which may not be favorable.
    4. The company has higher borrowings (388.23) compared to reserves (196.00), which may suggest financial risk.
    5. The company has not shown consistent growth in sales (333.15) and profit (-53.15).

    Stock Analysis

    • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in V2 Retail Ltd:
      1. Net Profit Margin: 2.38%
        • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
      2. ROCE: 11.43% (Industry Average ROCE: 14.12%)
        • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
      3. ROE%: 10.12% (Industry Average ROE: 16.07%)
        • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
      4. Interest Coverage Ratio (Post Tax): 1.59
        • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
      5. Quick Ratio: 0.19
        • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
      6. Stock P/E: 102 (Industry average Stock P/E: 56.56)
        • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
      7. Total Debt / Equity: 0.33
        • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
      The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
      Stock Rating:

    About the Company - Qualitative Analysis

    V2 Retail Ltd. is a Public Limited Listed company incorporated on 23/07/2001 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74999DL2001PLC147724 and registration number is 147724. Currently Company is involved in the business activities of Retail sale of readymade garments, hosiery goods, other articles of clothing and clothing accessories such as gloves, ties, braces etc.. Company’s Total Operating Revenue is Rs. 629.22 Cr. and Equity Capital is Rs. 34.39 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Retail - Apparel/AccessoriesKhasra No.928, Extended Lal Dora Abadi, New Delhi Delhi 110037cs@v2kart.com
    http://www.v2retail.com
    Management
    NamePosition Held
    Mr. Ram Chandra AgarwalChairman & Managing Director
    Mrs. Uma AgarwalWhole Time Director
    Mr. Akash AgarwalWhole Time Director
    Dr. Arun Kumar RoopanwalIndependent Director
    Mrs. Archana S YadavIndependent Director
    Mr. Srinivas Anand MannavaIndependent Director

    FAQ

    What is the latest intrinsic value of V2 Retail Ltd?

    The latest intrinsic value of V2 Retail Ltd as on 21 November 2024 is ₹920.86, which is 24.89% lower than the current market price of ₹1,226.00.

    What is the Market Cap of V2 Retail Ltd?

    The Market Cap of V2 Retail Ltd is 4,251 Cr..

    What is the current Stock Price of V2 Retail Ltd as on 21 November 2024?

    The current stock price of V2 Retail Ltd as on 21 November 2024 is ₹1,226.

    What is the High / Low of V2 Retail Ltd stocks in FY 2024?

    In FY 2024, the High / Low of V2 Retail Ltd stocks is 1,484/222.

    What is the Stock P/E of V2 Retail Ltd?

    The Stock P/E of V2 Retail Ltd is 102.

    What is the Book Value of V2 Retail Ltd?

    The Book Value of V2 Retail Ltd is 83.5.

    What is the Dividend Yield of V2 Retail Ltd?

    The Dividend Yield of V2 Retail Ltd is 0.00 %.

    What is the ROCE of V2 Retail Ltd?

    The ROCE of V2 Retail Ltd is 10.8 %.

    What is the ROE of V2 Retail Ltd?

    The ROE of V2 Retail Ltd is 10.6 %.

    What is the Face Value of V2 Retail Ltd?

    The Face Value of V2 Retail Ltd is 10.0.

    About the Author

    Author Avatar
    Getaka

    Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

    Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in V2 Retail Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE