3:1 Bonus Shares Coming By June 30; How To Trade This Consumer Stock Post Strong Q4 Results?

The top-cherished fashion retailer in India, V-Mart Retail Limited, now has 503 locations in 311 cities throughout 27 states and Union Territories. V-Mart, an omni-retail chain that offers fashion clothing, footwear, home furnishings, general products, and Kirana, was established in 2002 and is considered to be an innovator in established affordable fashion. With an average store size of 8,000 square feet, V-Mart is located throughout India, concentrating mostly on Tier II and Tier III cities. V-Mart Retail's stock closed Friday's trading session on the BSE 2.92% higher at Rs 3370.50 a share, with a market valuation of Rs 6,673.44 Cr. Following the company's announcement of strong financial results for the quarter and year ending March 31, 2025, as well as the first-ever recommendation for bonus shares in the ratio of 3:1, which is scheduled to be credited by June 30, the stock saw a buying trend.

V-Mart Bonus Shares

The Board of Directors "Recommended to members for their approval, the issue of bonus equity shares in the ratio of 3:1 i.e., 3 (Three) new fully paid-up equity share of Rs. 10/- (Rupees Ten Only) each for every 1 (one) existing fully paid-up equity share of Rs. 10/- (Rupees Ten Only) each, to the eligible equity shareholders of the Company as on the record date, subject to approval of the Members of the Company. The record date for reckoning eligible shareholders entitled to receive bonus shares will be communicated later," said V-Mart in a stock exchange filing.

The entire number of securities that V-Mart plans to issue or the total amount for which the securities will be granted as bonus shares is 5,93,98,623 equity shares of Rs. 10/-each.

The company's pre-bonus issue paid-up share capital as of Friday was 1,97,99,541 fully paid equity shares of Rs. 10 each, aggregating Rs. 19,79,95,410/-, whereas its post-bonus issue paid-up share capital will be 7,91,98,164 equity shares of Rs. 10 each, aggregating Rs. 79,19,81,640/-. The total value of the Securities Premium Account as of March 31, 2025, was Rs. 492 crores, while the free reserves and/or share premium needed to execute the bonus issue is Rs. 59,39,86,230.

According to V-Mart's regulatory filing, the bonus shares are expected to be credited to the eligible shareholders within two months after the Board's approval date, which is on or before June 30, 2025.

V-Mart Q4 Results

The company reported revenue from operations of Rs 780 Cr for the quarter ending March 31, 2025, up 17% from Rs 669 Cr in the same quarter of the previous fiscal year. For the full fiscal year ending March 31, 2025, its revenue was Rs 3,254 Cr, up 17% from Rs 2,786 Cr in FY24.

In Q4FY25, its EBITDA increased by 70% to Rs 68 Cr from Rs 40 Cr in Q4FY24, while in FY25, it improved by 77% to Rs 377 Cr from Rs 213 Cr in FY24. The firm recorded a net profit of Rs 19 Cr for the quarter that ended on March 31, 2025, as opposed to a net loss of Rs 39 Cr in Q4FY24. In FY25, the company's net profit was Rs 46 Cr, whereas in FY24, it made a loss of Rs -97 Cr.

With 13 new stores opening and 4 closings throughout the quarter, the company is still committed to its retail growth plan. In FY25, it shuttered nine outlets and opened 62 new ones.

V-Mart Share Price Target

"V-Mart is showing early signs of a bullish reversal after a long consolidation. The stock has reclaimed the ₹3300 level with rising volumes, suggesting fresh buying interest. Immediate resistance is at ₹3450, and a breakout may lead to ₹3600-₹3700 levels. Strong support is seen at ₹3250. If the stock holds above ₹3300, the trend may continue upward. Retail sector tailwinds and festive demand expectations may further support the move. Maintain a stop loss near ₹3200 for any fresh positions," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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