Why is V-Mart Retail falling/rising?

Sep 18 2025 10:25 PM IST
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As of 18-Sep, V-Mart Retail Ltd. is priced at 741.00, showing a slight increase but underperforming its sector and moving averages. Despite strong long-term growth and healthy fundamentals, the stock has declined over the past week and month, raising concerns about its debt levels and profitability.
As of 18-Sep, V-Mart Retail Ltd. is currently priced at 741.00, reflecting an increase of 1.65, or 0.22%. Despite this slight uptick, the stock has underperformed its sector by 0.76% today and is trading below its moving averages across various timeframes. Over the past week, the stock has declined by 1.00%, and its performance over the last month shows a decrease of 3.62%. However, the company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 21.11% and operating profit at 25.28%. Positive results in the last three consecutive quarters, including a significant growth in profit before tax and profit after tax, indicate strong fundamentals. Nevertheless, the stock's performance has been lackluster over the past year, generating a return of -17.04%, which contrasts sharply with its profit growth of 176.1%.

In the broader market context, the Sensex has increased by 1.80% over the past week and 2.14% over the past month, highlighting V-Mart's underperformance relative to the benchmark. The stock's high Debt to EBITDA ratio of 3.60 times raises concerns about its ability to service debt, which could be contributing to investor caution. Additionally, the company's low return on equity of 0.92% suggests limited profitability per unit of shareholder funds, further impacting investor sentiment. While high institutional holdings at 49.8% may provide some stability, the overall underperformance in both the near and long term compared to broader market indices indicates that investors may be wary of the stock's future prospects.
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