V-Mart Retail shares witnessed a surge on June 14 after a significant bulk deal took place, indicating positive market sentiment. Although it is unclear who bought and sold these shares, the transaction involved approximately 5.8 lakh shares, equivalent to around 3 percent of the company’s equity, with a total value of Rs 116 crore. The deal occurred at a slight premium to the previous closing price, with each share priced at Rs 1,990 compared to the previous session’s closing price of Rs 1,980.
The stock of V-Mart Retail immediately responded to the bulk deal, experiencing a 4 percent increase and reaching Rs 2,063 on the BSE as of 3 pm. This upward movement is in line with the consensus view among analysts, who hold a positive outlook on the stock. The average upside potential that analysts foresee for V-Mart Retail is around 15 percent.
Analysts at HDFC Securities acknowledged that the retailer’s unit economics have been weak but are gradually improving. They highlighted that footfall density has reached 91 percent of pre-pandemic levels, indicating a recovery in consumer engagement. While the retailer remains cautiously optimistic about demand, it expects a full recovery to occur in the second half of the fiscal year 2023-2024.
Axis Securities analysts, on the other hand, emphasized the long-term growth prospects of V-Mart Retail despite near-term challenges. They highlighted factors such as the recovery in rural demand, a shift from the unorganized to the organized sector, and increased focus in South India as key drivers for the company’s future success.
V-Mart Retail experienced a significant surge in its share price following a bulk deal. While the identities of the buyers and sellers remain undisclosed, the positive market response indicates optimism among investors. Analysts maintain a “buy” consensus on the stock, with an average upside potential of approximately 15 percent. The retailer’s improving unit economics and positive long-term growth drivers contribute to the optimistic outlook for V-Mart Retail.