Block deal today: V2 Retail see 4.4% equity changing hands worth Rs 258 crore

V2 Retail Ltd saw 4.4 per cent of its stake changing hands in six block deals on Friday. A total of 1.61 crore V2 Retail shares worth Rs 258 crore got traded at Rs 160 apiece, which was 0.83 per cent discount to its previous closing price of Rs 161.34 apiece.

The block deal comes days after V2 Retail reported 28 per cent year-on-year (YoY) growth in revenue, driven by 65 per cent YoY growth in retail area and 31 per cent YoY volume growth. For the quarter, gross margin expanded 310 basis points YoY to 31.1 per cent on lower discounting, driving a 41 per cent YoY rise in reported Ebitda, which was a 20 epr cent beat.

MOFSL said scale-led operating leverage has driven a sharp improvement in V2’s profitability, with pre-IND AS margin improving to 9 per cent in FY26 from  2 per cent in FY22, as revenue surged five times  over the period.

With 427 stores against a long-term target of 2,000, and a backend capable of supporting 150+ openings a year, V2 has a long runway for growth in underpenetrated Tier 2/3 markets.

MOFSL said V2 remains a key beneficiary of the unorganized-to-organized shift in value
fashion, backed by industry-leading SPSF and a loyal customer base. However, the pace of new-store maturation and balance sheet discipline remain key monitorables, it said.

"We build in an FY26-29E CAGR of 35 per cent/33 per cent/39 per cent in revenue/pre-Ind AS Ebitda/adjusted PAT, with the pre-IND AS margin at 8.8 per cent by FY29. We reiterate our BUY rating with a TP of INR200, premised on 13x Sep'28E EV/EBITDA (implied 20x P/E). Sustained recovery in SSSG and faster new-store maturation remain the key triggers for a re-rating," it said on November 4.