Hi @ceoji … I absolutely agree to your analysis. V2 was a big part of my holding since 35 levels ( at one point more than 45 % of my PF ) . I had exited partially around 400-420 and the rest after Q2 results and concall. The revenue growth and SSSG was faltering from last year Q3 onwards but I guess ownership bias kept me invested . I was hoping they would be able to sort the issues but that did not happen.
Turning around a business and scaling it up is a totally different ball game. I guess the management was kind of overconfident in their guidance and finally the ground realities caught up. Will be very surprised if they show good growth in Q3 .
I am still holding v2 and confident they can clock a revenue cagr of 30%+, it is still a small company, they are overconfident now, but things will be realised by the management sooner or later,
Good Results from V2 Retail
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Yes good results from V2 Retail. Hoping it will continue to expand and increase competitiveness to push same store sales.
Results are good but for some reason Market is not rewarding it. Only reason I think of is Intense competition . After budget and this year we have 50% more auspicious days for marriage than last year , which is a good sign for consumption sector and hopefully V2 benefits from it.
Yes, I agree, the market is not yet convinced about the turnaround and the ability of the management to scale up.
and @ruffles,
You are spot on,This is a consumer-facing retail business, and they have to be at the top of their game.The big players like Avenue Supermart ,Trent and V-Mart,among others,have learned their lessons,plus they have deep pockets.
and @Sailor1980,your remark about the foray into e-commerce, is well taken,as only time will tell.Their target customer segment may not prefer on-line over off-line. E-commerce is a different ball game altogether,with low entry barriers,but multiple skill sets and market strategies to deploy. So, the learning curve could be steep.
and @ceoji, I agree management capability and market perception are key factors on share valuation. Management will have to show consistency in strategies and results in varying market cycles,in retail with retail’s razor thin margins.
So,my take, based on the above discussion, and on the really valuable contributions on this thread, is that the markets are in watch-and wait mode,not only with respect to V2 Retail, but in general also,with the overhang of the coming general elections. So,this could be a long story to unfold.Hence,will hold in wait-and watch mode.
Disclosure. Holding Tracking position,with losses.
V2 is completly different to avenue supermart. Only comparable peer is V-Mart retail.
In hyderabad, Dmart and V2 mart are in side by side
Has anyone recently seen V2 retail store how is the ambiance and footfall looks in the store.
Any news on V2 retail, pls share
My cousin worked as legal counsel in V2 Retail for some months and then quit.
Reason :
- Bad business practices
- Holding payments of vendors for no concrete reason
- Promoters using operator for stock manipulation to make bucks on the side
- Other shady things
Those who are invested can take a call on their position.
Disclosure : Not invested and there’s no bias against the company.
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Anyone tracking this company. The valuations have turned very attractive with market cap around 350 cr. For FY22 Mgmt had guided sales of 900 cr from existing stores and approx 100 cr from new stores (20 new stores planned in FY22) and ebidta margins of 9%.
From current valuations this appears very cheap. Are there any red flags?
Trying to ascertain whether the fall in valuation is due to second wave or something else.
Disc. Invested 3% of portfolio. To increas once conviction improves.
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