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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of V2 Retail Ltd

About the Company - V2 Retail Ltd

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@v2retail.net.in
http://www.v2retail.com
Management
NamePosition Held
Mr. Ram Chandra AgarwalChairman & Managing Director
Mrs. Uma AgarwalWhole Time Director
Mr. Akash AgarwalNon Executive Director
Mrs. Archana S YadavIndependent Director
Dr. Arun Kumar RoopanwalIndependent Director
Mr. Srinivas Anand MannavaIndependent Director

V2 Retail Ltd. Share Price Update

Share PriceValue
Today₹379.95
Previous Day₹368.05

Basic Stock Data of V2 Retail Ltd

Market Cap 1,308 Cr.
Current Price 378
High / Low413/67.0
Stock P/E79.7
Book Value 71.6
Dividend Yield0.00 %
ROCE3.77 %
ROE5.10 %
Face Value 10.0

Data Source: screener.in

Competitors of V2 Retail Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Aditya Birla Fashion & Retail Ltd 21,470 Cr. 226266/184 31.00.00 %5.03 %2.20 % 10.0
7NR Retail Ltd 17.3 Cr. 6.1810.7/4.40 10.50.00 %1.76 %1.18 % 10.0
Trent Ltd 1,39,422 Cr. 3,9224,100/1,273172 82.00.06 %11.5 %11.9 % 1.00
Vaibhav Global Ltd 7,319 Cr. 442543/26955.6 73.91.35 %11.1 %9.02 % 2.00
Industry Average42,057.08 Cr1,149.0556.9049.350.35%7.35%6.08%5.75

V2 Retail Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales85.00227.36189.3282.55149.53238.89158.25211.28194.51239.66193.43263.61231.32
Expenses80.87185.07186.8781.77132.00199.03151.78189.72184.44201.53179.19228.03211.44
Operating Profit4.1342.292.450.7817.5339.866.4721.5610.0738.1314.2435.5819.88
OPM %4.86%18.60%1.29%0.94%11.72%16.69%4.09%10.20%5.18%15.91%7.36%13.50%8.59%
Other Income5.541.298.419.152.021.073.660.971.182.392.131.392.13
Interest6.948.248.989.019.089.079.419.7011.0810.429.3610.4412.25
Depreciation13.0015.3514.6515.3514.7415.0913.6616.4815.6517.6017.3318.1518.24
Profit before tax-10.2719.99-12.77-14.43-4.2716.77-12.94-3.65-15.4812.50-10.328.38-8.48
Tax %20.64%25.56%19.58%21.55%26.46%26.77%26.51%22.47%25.06%25.52%25.39%25.54%32.90%
Net Profit-8.1514.89-10.27-11.31-3.1412.29-9.51-2.83-11.599.32-7.716.24-5.70
EPS in Rs-2.394.37-3.01-3.32-0.913.57-2.77-0.82-3.372.71-2.241.80-1.65

V2 Retail Ltd Quarterly Chart

V2 Retail Ltd Profit & Loss

MonthMar 2008Mar 2009Mar 2010Mar 2012Mar 2013Mar 2014Mar 2015Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9531,3231,10542109229287701538629839928
Expenses8311,3261,56552108223258624488562753820
Operating Profit122-3-460-9152877506785108
OPM %13%-0%-42%-21%1%2%10%11%9%11%10%12%
Other Income89-41112215231678
Interest399891879103333394242
Depreciation28494732325156596771
Profit before tax63-140-639-19-7-5189-15-15-172
Tax %36%33%35%-81%26%18%47%-1%16%21%24%
Net Profit41-94-415-35-5-4109-13-12-132
EPS in Rs18.14-42.19-185.42-15.55-2.35-1.934.132.57-3.76-3.40-3.730.62
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%

V2 Retail Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2008-20092009-20102012-20132013-20142014-20152020-20212021-20222022-2023
YoY Net Profit Growth (%)-329.27%-341.49%85.71%20.00%350.00%-244.44%7.69%-8.33%
Change in YoY Net Profit Growth (%)0.00%-12.22%427.20%-65.71%330.00%-594.44%252.14%-16.03%

V2 Retail Ltd Growth

Compounded Sales Growth
10 Years:23%
5 Years:%
3 Years:6%
TTM:32%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:212%
Stock Price CAGR
10 Years:42%
5 Years:7%
3 Years:38%
1 Year:326%
Return on Equity
10 Years:%
5 Years:%
3 Years:-5%
Last Year:-5%

V2 Retail Ltd Balance Sheet

MonthMar 2008Mar 2009Mar 2010Mar 2012Mar 2013Mar 2014Mar 2015Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital222222222222243434343435
Reserves249155-256252247240250245235224213213
Borrowings53175176657718469326396398424445
Other Liabilities16115224611283962115148136124206
Total Liabilities9631,080778343368385405721813792794898
Fixed Assets209271222791418339395394408421
CWIP2160010145006
Investments0003332313000000
Other Assets734803557303326340355378414398386471
Total Assets9631,080778343368385405721813792794898

V2 Retail Ltd Reserves and Borrowings Chart

V2 Retail Ltd Cash Flow

MonthMar 2008Mar 2009Mar 2010Mar 2012Mar 2013Mar 2014Mar 2015Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -197-6557-38-1212357435986
Cash from Investing Activity -115-1085-1-4-7-67-20-16-12
Cash from Financing Activity 356133-6668-4-30-28-22-58-76
Net Cash Flow45-41-4-33-80-152-39-15-2

V2 Retail Ltd Financial Efficiency Indicators

MonthMar 2008Mar 2009Mar 2010Mar 2012Mar 2013Mar 2014Mar 2015Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days01140000010
Inventory Days36226664187207118141156308264184
Days Payable3338529111460637513410871
Cash Conversion Cycle3292301310093587981174156113
Working Capital Days19916313-262-59-32-276613111888
ROCE %-5%-68%0%1%8%3%4%4%

V2 Retail Ltd Financial Efficiency Indicators Chart

V2 Retail Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters54.00%54.00%53.56%53.56%53.56%53.56%53.57%53.57%53.57%54.26%54.26%54.28%
FIIs6.45%6.45%6.42%6.40%6.44%6.40%6.47%6.40%6.40%6.37%6.36%6.36%
DIIs0.00%0.00%0.18%1.53%1.54%1.53%1.53%1.53%1.91%0.37%0.37%0.37%
Public39.55%39.54%39.84%38.51%38.46%38.51%38.45%38.51%38.13%39.00%39.01%38.99%
No. of Shareholders21,55221,59420,85320,16019,49319,51319,74419,72919,59718,63417,32416,166

V2 Retail Ltd Shareholding Pattern Chart

No. of V2 Retail Ltd Shareholders

This stock is not held by any mutual fund

V2 Retail Ltd ROCE Trend

V2 Retail Ltd EPS Trend

V2 Retail Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 15
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-3.73-3.40-3.772.574.14
Diluted EPS (Rs.)-3.73-3.39-3.762.573.70
Cash EPS (Rs.)15.7713.7112.5117.525.02
Book Value[Excl.RevalReserv]/Share (Rs.)71.8075.0878.7881.86116.32
Book Value[Incl.RevalReserv]/Share (Rs.)71.8075.0878.7881.86116.32
Revenue From Operations / Share (Rs.)243.94182.97157.94205.61121.63
PBDIT / Share (Rs.)26.3623.4220.9722.6812.84
PBIT / Share (Rs.)6.866.314.697.7311.95
PBT / Share (Rs.)-4.93-4.32-4.482.547.82
Net Profit / Share (Rs.)-3.73-3.40-3.772.574.14
NP After MI And SOA / Share (Rs.)-3.73-3.40-3.772.574.14
PBDIT Margin (%)10.8012.8013.2711.0310.55
PBIT Margin (%)2.813.452.963.769.82
PBT Margin (%)-2.02-2.36-2.831.236.42
Net Profit Margin (%)-1.52-1.85-2.381.253.40
NP After MI And SOA Margin (%)-1.52-1.85-2.381.253.40
Return on Networth / Equity (%)-5.19-4.52-4.773.143.55
Return on Capital Employeed (%)4.003.762.754.739.47
Return On Assets (%)-1.61-1.47-1.571.212.40
Long Term Debt / Equity (X)0.020.021.150.980.05
Total Debt / Equity (X)0.210.211.461.170.05
Asset Turnover Ratio (%)1.060.790.710.000.72
Current Ratio (X)1.591.591.561.890.80
Quick Ratio (X)0.230.230.260.560.07
Inventory Turnover Ratio (X)0.180.000.000.000.00
Interest Coverage Ratio (X)2.242.202.292.563.10
Interest Coverage Ratio (Post Tax) (X)0.680.680.580.872.00
Enterprise Value (Cr.)284.47551.97798.94434.2291.45
EV / Net Operating Revenue (X)0.330.871.480.610.31
EV / EBITDA (X)3.146.8511.175.613.02
MarketCap / Net Operating Revenue (X)0.280.800.790.250.26
Price / BV (X)0.951.961.600.630.28
Price / Net Operating Revenue (X)0.280.800.790.250.26
EarningsYield-0.05-0.02-0.020.040.12

V2 Retail Ltd Profitability Ratios (%)

V2 Retail Ltd Liquidity Ratios

V2 Retail Ltd Liquidity Ratios (%)

V2 Retail Ltd Interest Coverage Ratios (X)

V2 Retail Ltd Valuation Ratios

Fair Value / Intrinsic Value of V2 Retail Ltd

Fair Value: ₹296.85

The stock is overvalued by 21.47% compared to the current price ₹378

*Investments are subject to market risks

Strength and Weakness of V2 Retail Ltd

StrengthWeakness
    1. The stock is trading at a high valuation with an average P/B ratio of 7.51 and average Dividend Yield of 4.56%.
    2. The stock has a low average ROCE of -4.82%, which may not be favorable.
    3. The stock has a high average Working Capital Days of 36.18, which may not be favorable.
    4. The stock has a high average Cash Conversion Cycle of 129.64, which may not be favorable.
    5. The company has higher borrowings (359.83) compared to reserves (188.92), which may suggest financial risk.
    6. The company has not shown consistent growth in sales (438.08) and profit (-63.75).

    Should I Buy V2 Retail Ltd Share Now?

    • Considering various financial indicators, investors might exercise caution regarding investment in V2 Retail Ltd:
      1. Net Profit Margin: -1.52%
        • 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: 4.00% (Industry Average ROCE: 7.35%)
        • 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. Interest Coverage Ratio (Post Tax): 0.68
        • 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.
      4. Quick Ratio: 0.23
        • 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.
      5. ✗ Stock P/E: 79.0 (Industry average Stock P/E: 56.35)
        • 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.
      6. ✓ Total Debt / Equity: 0.21
        • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

    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