Why is V-Mart Retail falling/rising?

Jul 16 2025 10:00 PM IST
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As of 16-Jul, V-Mart Retail Ltd. is currently priced at 784.10, reflecting a recent increase but a year-to-date decline of -20.30%. Despite a significant profit increase, the stock faces long-term challenges, including weak fundamentals and underperformance compared to the sector and broader market.
As of 16-Jul, V-Mart Retail Ltd. is experiencing a price increase, currently at 784.10, reflecting a rise of 7.1 or 0.91%. The stock has shown a positive trend over the last two days, gaining 2.9% during this period, although it has underperformed its sector by 0.63%. Despite this recent uptick, the stock has faced challenges, with a 1-week return of -1.46% and a 1-month decline of -14.98%. Positive factors contributing to the stock's movement include a significant increase in profits by 127.1% over the past year, a higher PAT of Rs 70.59 crore, and attractive valuation metrics such as a PEG ratio of 1.9. However, the company also faces negative aspects, including weak long-term fundamentals with a low average ROCE of 4.20% and a high Debt to EBITDA ratio of 3.60 times, which may dampen investor confidence.

In the broader market context, V-Mart Retail's recent performance contrasts with the benchmark Sensex, which has gained 1.02% over the past month. While the stock has shown some short-term recovery, its longer-term performance remains concerning, with a year-to-date decline of -20.30% compared to the Sensex's increase of 5.75%. The stock's liquidity appears adequate, with a delivery volume increase of 53.07% against the 5-day average, indicating rising investor participation. However, the overall underperformance relative to both the sector and broader market indices suggests that while there may be short-term gains, the stock's long-term outlook remains uncertain.
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