Investors are keeping a close eye on V-Mart Retail, a prominent player in the value fashion retail sector of India, as mutual funds ramp up their investments. In the last quarter of the fiscal year ending March 2025, these funds collectively increased their holdings to an unprecedented 32.22%, translating to 63.8 lakh shares. This growth marks a significant rise from 31.72% at the end of December, as reported by Trendlyne.

Mutual Funds Amplify Their Investment in V-Mart Retail

V-Mart Retail has recently seen a surge in mutual fund investments, particularly in the final quarter of FY25. Notable funds that have increased their stakes include:

• Bandhan Flexi Cap Fund: Now holds 4.6% of the company.
• Franklin India Smaller Companies Fund: Increases its stake to 2.53%.
• Motilal Oswal Nifty Microcap 250 Index Fund: Raised its stake to 1.87%.

This trend is not just limited to mutual funds; foreign investors have also increased their ownership in V-Mart to 17.5% from 17.3% in December. However, retail investors have slightly reduced their stakes, dropping to 5.3% from 5.9%.

V-Mart Retail: A Snapshot

V-Mart Retail is an omnichannel retailer catering to families with a diverse product range, including fashion apparel, footwear, home furnishings, and general merchandise. The company primarily targets Tier II and Tier III cities, boasting an average store size of 8,000 sq. ft. Recently, on April 11, V-Mart celebrated the opening of its 500th store, expanding its retail footprint to over 43 lakh square feet across more than 300 cities. In FY25, the company opened 62 new stores under the banners of V-Mart, Unlimited, and LimeRoad.com.

Stock Performance and Growth Metrics

After a challenging period marked by a 31% decline over five months, V-Mart’s stock has bounced back, gaining 10% this month alone. This follows a remarkable growth period where the stock returned 167% to shareholders from November 2023 to October 2024. Over the past nine years, V-Mart’s stock has delivered an impressive 600% increase.

In terms of financial performance, V-Mart reported a 17% year-on-year (YoY) increase in revenue for the March quarter. The same-store sales growth (SSSG) was robust, with V-Mart at +7% and Unlimited at +10%, contributing to an overall SSSG of 11% for FY25. Total revenues, excluding the LimeRoad marketplace, also grew by 18% YoY.

Digital Marketplace Revenue

V-Mart’s digital marketplace, LimeRoad, generated ₹8 crore in commission income based on a Net Merchandising Value (NMV) of ₹23 crore. This innovative approach enhances the company’s revenue streams and complements its retail operations.

As V-Mart Retail continues to expand and adapt in a competitive market, investors are keenly observing its upward trajectory, making it a noteworthy stock to watch.