Diwali Series Detailes Analysis for V2 Retail Limited

Diwali Series Detailes Analysis for V2 Retail Limited

ABOUT V2 RETAIL LIMITED COMPANY

MISSION – Democratize fashion by offering affordable, high quality apparel to India’s neo-middle class.

PRESENCE – 216 stores across 165+ cities in 21 states, with ~23.5 lakh sq. ft. retail area.

CORE PRODUCT –

1. Men’s Wear (41%)
2. Women’s Wear (29%)
3. Kids Wear (24%)
4. Lifestyle Product (6%)

FINANCIAL HIGHLIGHTS (CONSOLIDATED)

• MARKET CAP – 8219 cr.
• P/E RATIO – 102
• ROCE – 16.9%
  ROE – 23.3%
• OPM – 13.8%
• SALES GROWTH – 59.7%
• PEG RATIO – 1:01
• PLEDGER – 0:00%
• PROFIT GROWTH – 113%
• QTR PROFIT VAR – 50.9%

OPERATIONAL HIGHLIGHTS

• Average Selling Price – €305 (up €260 YoY)
• Volume growth – +50% YoY
• Average Bill Value – €901 (up €824 YoY)
• Full Price Sales – 92% of Total (up 93% YoY)
• Net Working capital Days – Reduced to 34 (us37 last year)
• EXPANSION – Opened 28 stores / closed 1 – total 216 stores

FINANCIAL STRENGTH

• Strong Cash flow – €213 cr. from operation in FY25
• ROE – Improved with higher profitability
• Low Leverage – Conservative financial structure with efficient working capital

BUSINESS MODEL AND STRATEGY

• In house design team – creating trend driven collection.
• Job work Model – control over quality and cost.
• Centralized warehouse at Gurgaon – weekly replenishment.
• Focus on tier 2 & tier 3 cities – large untapped market.
• Omni-channel efforts – integrating online and offline presence.

KEY TAKEAWAYS

• Value retailing thrives on volume, efficiency and affordability.
• Expansion strategy in smaller cities doubles market penetration.
• Operational discipline boosts profitability.
• V2 Retail turnaround story – from losses to consistent growth since 2011.

RESULTS

 

BALANCE SHEET