V2 Retail Limited

Consumer Cyclical — Apparel Retail · NSE

₹171.90+₹5.65 (+3.40%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of V2 Retail Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

V2 Retail Limited, together with its subsidiary, V2 Smart Manufacturing Private Limited, engages in the retail trade of garments, textiles, and accessories in India.

IndustryApparel Retail

SectorConsumer Cyclical

Employees10,561

Annual revenue₹3,060 Cr

How does it make money?

Turns over ₹3,060 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 10,561 employees supports ₹29.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹29.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are TRENT LTD, TITAN COMPANY LIMITED, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 20.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE25.9%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 48.3% and earnings to grow about 46.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+48.3%

Est. earnings growth+46.2%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +266% while net margin moved -445% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+266%

Margin effect-445%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 1.10x is on the heavy side
• Current ratio of 1.44 covers short-term liabilities, without much slack
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
• Interest cover of 3.2x is adequate
✗ Debt has grown 32.9% a year — worth checking what it bought

Quality vs. Valuation

Company Quality

69/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

68/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

33.8x

2Y Median

117.7x

28 monthly readings · mean 134.7x · range 37.5x–231.4x

Sector Median

69.9x

median of 3 sector peers

🟢Current valuation is approximately 71% below its 2y median of 117.7x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 52% below the peer median of 69.9x.

vs. its own history

Cheap

117.7x median over 28 months · -71%

vs. sector peers

Cheap

69.9x median of 3 peers · -52%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 10.3% to 15.6% over 3 years.
Return on equity is rising
ROE has improved from -5.2% to 18.0%.
Return on capital is rising
ROCE has improved from 4.0% to 20.6%.
High return on capital employed
ROCE of 20.6% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 135% over 3 years, from ₹424 Cr to ₹995 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 2257% against revenue up 266% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹334 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 309% against revenue up 266% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 10.3% to 15.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 71% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 2257% against revenue up 266%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 41% a year✓ 54.1% CAGR
Latest reported year was 57.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 15.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹334 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹6,268 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.8x

Fair

Fairly valued against the generic band

P/B Ratio

6.95x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.09

Profitable

Profitable on a per-share basis

ROE

18.0%

Strong

Strong capital efficiency

ROCE

20.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.10x

Moderate

Moderate leverage

Revenue Growth (YoY)

57.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

61.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹334 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

22.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

7.6%

Average

Average margins

Net Margin

5.2%

Average

Average bottom-line conversion

Current Ratio

1.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.37

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

187.1 / 206.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

28.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹836 Cr	₹1,165 Cr	₹1,880 Cr	₹3,060 Cr	+54.1%
EBITDA	₹86 Cr	₹155 Cr	₹263 Cr	₹477 Cr	+76.7%
EBITDA Margin	10.3%	13.3%	14.0%	15.6%	—
PAT (Net Profit)	-₹13 Cr	₹28 Cr	₹72 Cr	₹162 Cr	—
EPS	₹-0.37	₹0.8	₹2.08	₹4.58	—
ROE	-5.2%	10.1%	20.8%	18.0%	—
ROCE	4.0%	11.4%	15.9%	20.6%	—
Total Debt	₹424 Cr	₹525 Cr	₹871 Cr	₹995 Cr	+32.9%
Free Cash Flow	₹73 Cr	₹54 Cr	₹67 Cr	-₹334 Cr	—

🟢 Revenue has grown at 54.1% a year over 3 years.

🟢 EBITDA has grown at 76.7% a year over 3 years.

🟢 EBITDA Margin has risen from 10.3% to 15.6% over 3 years (+5.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹13 Cr to ₹162 Cr.

🟢 EPS has turned positive, from ₹-0.37 to ₹4.58.

🟢 ROE has risen from -5.2% to 18.0% over 3 years (+23.2 pts).

🟢 ROCE has risen from 4.0% to 20.6% over 3 years (+16.7 pts).

🔴 Total Debt has grown at 32.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹73 Cr to -₹334 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,422 Cr

Total Liabilities

₹1,520 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹103 Cr

Capex

-₹231 Cr

Shareholding (proxy)

Institutional Holding

10.9%

Insider Holding

54.1%

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹272.5

+58.5% vs CMP

Target Range

₹265 – ₹280

Peer Comparison

Company	P/E	ROE
TRENT LTD	87.2x	25.9%
TITAN COMPANY LIMITED	68.5x	36.7%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

3 mixed3 general

V2 Retail Share Price Slumps 20% To Hit 52-Week Low After Q2 Business Update

NDTV Profit, 05 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

V2 Retail Share Price and fundamentals after 6.96% rise

Univest, 14 Oct

V2 Retail shares plunge 19% after Q2 business update | What lies ahead for investors?

Livemint, 05 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Here's why V2 Retail shed 19%; DMart slipped 4% to near 52-wk low on Monday

Business Standard, 05 Oct

V2 Retail shares fall 19% after Q2 update on revenue, store expansion

Business Today, 05 OctCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

V2 Retail's (NSE:V2RETAIL) Performance Raises Some Questions

Simply Wall Street, 05 Jun

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingValuation · Risk

WeakFinancial Health

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑