Current Rating Overview
MarketsMOJO’s current rating of 'Hold' for V2 Retail Ltd indicates a neutral stance on the stock, suggesting that investors should maintain their existing positions rather than aggressively buying or selling. This rating was assigned following a reassessment on 05 January 2026, when the company’s Mojo Score declined from 71 to 57, reflecting a shift in the overall evaluation of the stock’s prospects. The 'Hold' grade implies that while the company demonstrates certain strengths, there are also factors that warrant caution, making it prudent for investors to monitor developments closely.
Quality Assessment
As of 28 January 2026, V2 Retail Ltd’s quality grade is assessed as average. The company’s ability to generate returns on equity remains modest, with an average Return on Equity (ROE) of 8.20%, signalling relatively low profitability per unit of shareholders’ funds. Additionally, the company faces challenges in servicing its debt, evidenced by a high Debt to EBITDA ratio of 4.55 times. This elevated leverage level suggests a degree of financial risk, which investors should consider when evaluating the stock’s risk profile.
Valuation Perspective
The valuation grade for V2 Retail Ltd is fair, reflecting a balanced view of the stock’s price relative to its earnings and capital employed. The company’s Return on Capital Employed (ROCE) stands at 12.9%, and it trades at an Enterprise Value to Capital Employed ratio of 4.7. These metrics indicate that the stock is reasonably priced, trading at a discount compared to its peers’ historical valuations. Furthermore, the company’s Price/Earnings to Growth (PEG) ratio is 0.5, suggesting that the stock may be undervalued relative to its earnings growth potential, which is an important consideration for value-oriented investors.
Financial Trend and Performance
Currently, V2 Retail Ltd exhibits a very positive financial trend. The company has demonstrated robust long-term growth, with net sales increasing at an annual rate of 38.89% and operating profit surging by 85.17%. The latest quarterly results reinforce this momentum, showing a remarkable 143.24% growth in operating profit. Profit Before Tax (PBT) excluding other income reached ₹19.87 crores, growing by an impressive 502.23%, while Profit After Tax (PAT) stood at ₹17.23 crores, reflecting a staggering 992.7% increase. The company has also maintained positive results for ten consecutive quarters, underscoring consistent operational strength. Cash and cash equivalents have reached a high of ₹15.24 crores, providing a solid liquidity cushion.
Technical Analysis
From a technical standpoint, the stock is currently rated as sideways. This indicates that the price movement has been relatively stable without a clear upward or downward trend. Over the past day, the stock gained 1.71%, but it has experienced a decline of 23.03% over the past month and 18.46% over three months. Year-to-date, the stock is down 24.78%, although it has delivered a positive 3.65% return over the last year. These mixed price movements suggest that the stock is consolidating, and investors should watch for potential breakout signals or further sideways trading before making significant moves.
Implications for Investors
The 'Hold' rating for V2 Retail Ltd reflects a nuanced view of the company’s current standing. While the firm shows strong financial growth and operational improvements, concerns around debt servicing and moderate profitability temper enthusiasm. Investors should consider the stock as a stable holding rather than a high-conviction buy at this stage. The fair valuation and positive financial trends provide a foundation for potential upside, but the sideways technical pattern and leverage risks suggest caution.
Summary of Key Metrics as of 28 January 2026
- Mojo Score: 57.0 (Hold grade)
- Debt to EBITDA Ratio: 4.55 times
- Return on Equity (avg): 8.20%
- Net Sales Growth (annual): 38.89%
- Operating Profit Growth: 85.17%
- Operating Profit Quarterly Growth: 143.24%
- PBT (Quarterly): ₹19.87 crores (502.23% growth)
- PAT (Quarterly): ₹17.23 crores (992.7% growth)
- Cash and Cash Equivalents (Half Year): ₹15.24 crores
- ROCE: 12.9%
- Enterprise Value to Capital Employed: 4.7
- PEG Ratio: 0.5
- Stock Returns: 1D +1.71%, 1M -23.03%, 1Y +3.65%
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Sector and Market Context
Operating within the Garments & Apparels sector, V2 Retail Ltd is classified as a smallcap company. The sector has faced varied headwinds recently, including fluctuating raw material costs and changing consumer preferences. Despite these challenges, V2 Retail’s strong sales growth and profitability improvements highlight its resilience and operational efficiency. The stock’s current valuation discount relative to peers may reflect broader sector uncertainties, but also presents an opportunity for investors seeking exposure to a fundamentally improving company.
Conclusion
In conclusion, V2 Retail Ltd’s 'Hold' rating by MarketsMOJO as of 05 January 2026 reflects a balanced assessment of its strengths and risks. The company’s very positive financial trends and fair valuation are offset by moderate profitability and elevated debt levels. Investors should view the stock as a stable holding with potential for growth, but remain vigilant to market and company-specific developments. The sideways technical stance suggests waiting for clearer price direction before increasing exposure.
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