Friday, 28 March 2014

V Mart Retail- A Possible Multibagger...

Wrote on V Mart Retail as a part of Safal Niveshak Value Investing Contest.

 Report can be accessed here-

 http://www.safalniveshak.com/value-investing-contest-v-mart-retail/
However, please note-

 This is not a Buy & Forget Stock. There are things which can go wrong here.
An investor needs to monitor-
1) Sales/ sq foot — A declining trend here means they are struggling to grow in their existing stores / growing too fast for confort.
2) PAT margins — A declining trend here means they are giving too high discounts to attract customers may be due to increased competition or due to lack of customer interest.
3) Inventory Days — A declining trend here means they are not able to sell inventory fast enough & run the risk of obsolescence.
4) Payable Days — A declining trend here means suppliers are taking better terms from the company.

 Disclosure- Invested
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7 comments:

  1. Prashanth Jnanendra2 April 2014 at 15:07

    Very nicely articulated JK!
    The size of tier-2/3 market is very lucrative! Also there are unlisted players too right? D-mart for instance? Not sure if they are targeting tier-2/3.

    ReplyDelete
    Replies
    1. Fundoo_Pupil2 April 2014 at 20:39

      Thanks Prashanth.
      Yes, D-mart has much higher sales/ store also.
      But size is huge. Hopefully VMart will be able to capture some part :)

      Delete
    2. Prashanth Jnanendra3 April 2014 at 09:18

      True!
      And Congratulations on winning the SN contest! :)
      What books do you plan to buy?

      Delete
    3. Fundoo_Pupil3 April 2014 at 10:54

      Thanks. Would be happier it VMart turns out to be 5-10 bagger from here :)
      Buying-
      The Thoughtful Investor by Basant Maheshwari
      Its Earnings That Count by Hewitt Heiserman
      Benjamin Graham and the Power of Growth Stocks by Frederick K. Martin

      Delete
    4. Prashanth Jnanendra3 April 2014 at 15:14

      Never knew of the third book! Ben & growth stocks?! Seems interesting
      And in case you visit Bangalore, lemme know. Will want to meet up :)

      Delete
    5. Fundoo_Pupil3 April 2014 at 23:16

      Heard good reviews on it. So ordered this. Lets see :)
      Sure. :)

      Delete
  2. Anonymous14 June 2014 at 14:13

    Hi, Any updates on the story after the last quarter results..Bijeesh

    ReplyDelete

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