V-Mart Retail Ltd, a smallcap stock, is trending ahead of its bonus issue in the ratio of 3:1. The diversified retail company is going to turn ex-bonus next week. Ahead of the record date, the stock is recommended to BUY for a target price above Rs 4,050 levels. Currently, the stock is below Rs 3,700.
V-Mart Retail Ltd Share Price:
After market hours of June 18, V-Mart Retail stock ended at Rs 3625.10 apiece on BSE, down by Rs 8.10 or 0.22% from the previous day. Its market cap is around Rs 7,193.45 crore, making it a small-cap stock on both exchanges. The stock's 52-week high and low is at Rs 4,517.30 apiece and Rs 2,692.75 apiece.
Notably, V-Mart Retail's price-to-equity ratio is high at 156.79x, and the return on equity is at 6.47%. YTD, the stock dropped by nearly 6.5% so far.
V-Mart Retail Ltd Bonus Issue:
V-Mart has fixed Monday, June 23, 2025, as the Record Date to determine the equity shareholders of the Company eligible for bonus equity shares of the Company. The bonus issue is in the ratio of 3:1, meaning, V-Mart will reward investors with 3 new shares on existing 1 equity share. This will be the first-ever bonus issue by V-Mart Retail.
Benefits Of Bonus Issue:
Bonus shares are one of the many corporate actions that listed companies announce on several occasions. Bonus shares are like incentives which are free of cost given to investors. Under this corporate action, new shares are issued at the existing Face Value of equity shares of the company. Hence, the face value remains the same post-bonus issue.
According to Nirmal Bang's website, from an investors' point of view, the following are the benefits of the bonus issue:
1) Investors do not have to pay any tax while receiving bonus shares from the company.
2) Bonus shares are considered beneficial for long-term shareholders of the company looking to multiply their investment.
3) Bonus shares are free of cost to shareholders as they are issued by the company, which increases the outstanding shares of an investor in the company and enhances the liquidity of the stock.
4) Bonus shares help build the trust of an investor in the company's business and operations because they have invested in the company and, in turn, gives capital to the investor.
BUY/SELL V-Mart Retail Share Price:
The consensus recommendation from 15 analysts for V-Mart Retail Ltd. is BUY, as per Trendlyne data. Of the total, 11 analysts have recommended 'STRONG BUY' on V-Mart. EPS is expected to grow by 125.7% in FY26. The average target price is set at Rs 4052.87 apiece on V-MART, indicating nearly 12% potential upside.
In May month, brokerage Anand Rathi set a BUY recommendation with target price at Rs 4,826 on V-Mart after its Q4 results.
V-Mart's Q4 profitability improved, with a 272bps y/y higher EBITDA margin at 8.7% (~90bps above ARe), driven by lower Limeroad losses and better offline margins. FY25 sales/EBITDA grew ~17%/77% y/y, led by 11% SSSG. The focus is on enhancing product quality and designs, accelerating digital transformation and store network optimization/renovation to improve consumer experience. Apparel ASP declined a tad in FY25 due to the lower winter product sales mix, as per the broker's note.
"Benefiting from strategic store closures and product improvement, sales per sq.ft. for V-Mart/Unlimited grew ~11% y/y to Rs742/575. Net stores added were 53 (62 gross) in FY25, taking the total to 497. The company targets 13-15% net sq.ft. addition every year. Management guided to 17-20% revenue growth, with likely rangebound EBITDA margins as the focus is on gaining market share. Our FY26/27 revenue estimates are largely unchanged, while EBITDA is ~1% lower on average on incremental employee expenses. We retain our Buy rating, with a 12-month TP of Rs4,826 (earlier Rs5,150), 19x FY27e EV/EBITDA (21x FY27e)," analyst at Anand Rathi said in their note.
About V-MART Retail Ltd:
V-Mart is a standalone concept of One Stop Family Shop with a comprehensive portfolio of retail products offering a large assortment of product categories catering to the needs of the family. For the convenience of customers as well as to identify the store's stock requirement and sales pattern, V-Mart has internally created 4 divisions/formats that are mentioned below. In certain stores the company has blended two concepts into one if required.
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