• V2 Retail (VREL) 3QFY20 revenue declined by 9% YoY primarily due to lacklustre consumer demand, extended monsoon and shift in festive season. Same store sales growth (SSSG) declined by 7% in 3QFY20 vs 9% growth in 3QFY19.
• Gross Margins were impacted on account of additional provision of INR 69mn for expected loss on sale of old inventory. The management indicated that the outlook for 4QFY20 continues to remain muted on the face of general slowdown in consumption. However, the management remains confident of improvement in FY21 performance led by SSSG of 5-6% and net expansion of 5-6 stores.
• The stock valuing at EV/EBITDA of 5x FY22.
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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