Synopsis:
V2 Retail Ltd shares hit the 5% lower circuit for two consecutive sessions despite strong Q1FY26 results, following a bulk deal by Motilal Oswal Mutual Fund.
A small-cap stock listed below saw notable price movements after the announcement of Q1FY26 results and following large bulk deal transactions were completed on the stock exchanges on July 31.
V2 Retail Ltd with a market capitalization of Rs. 6,117 crore, is currently trading at Rs. 1,769, hitting the 5 percent lower circuit, down from its previous close of Rs. 1,858.
What’s the News?
In yesterday’s trading session, the stock experienced selling pressure and fell to the 5 percent lower circuit despite its impressive performance. Furthermore, a bulk transaction on the NSE disclosed that Motilal Oswal Mutual Fund sold 1.90 lakh shares of V2 Retail Ltd for an average price of Rs. 1,868.30, or 0.55 percent of the company, for about Rs. 35.4 crore. Even today, the stock continued its downward trend and again hit the 5 percent lower circuit.
Recently V2 Retail Ltd announced its Q1 results, posting strong financial performance with revenue growing 52.29 percent year-on-year from Rs. 415 crore to Rs. 632 crore, and 26.65 percent quarter-on-quarter from Rs. 499 crore. The net profit increased by 316.67 percent QoQ from Rs. 6 crore to Rs. 25 crore, and by 56.25 percent from Rs. 16 crore in Q1FY25.
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About the company
Founded in 2001, V2 Retail offers reasonably priced goods to the general public. The company was first introduced as “Vishal,” went public in 2007, and changed its name to V2 Retail in 2011 following a brand sale due to operational losses. It primarily targets middle-class and neo-middle-class individuals in Tier-II and Tier-III cities.
Currently, the company operates 107 stores in 85 cities across 17 states, with a total retail space of approximately 11.4 lakh square feet. The company’s revenue for FY2024–2025 increased by 61.72 percent year over year from Rs. 1,165 crore to Rs. 1,884 crore. Net profit saw an incline of 157.14 percent, from Rs. 28 crore to Rs. 72 crore.
At the movement company is trading at a price-to-earnings (P/E) ratio of 76.1x which is higher than industry P/E of 47.2x. A return on equity (ROE) of about 23.2 percent and a return on capital employed (ROCE) of about 16.6 percent demonstrate the company’s strong position. Significant improvement in the debt-to-equity ratio to 2.45.
Written by Akshay Sanghavi
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