V2 Retail Stock Research

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V2 Retail Detail

V2 Retail is in portfolio of Ashish Kacholia. He is one of the top investors in India. The company belongs to Retail sector.

As per the Company website it is one of the leading retail chains in India. The Company started off as Vishal Mega Mart. They sold the brand Vishal and used the money to start V2 retail in year 2011. As of this writing it has 77 stores with 9+Lakhs sq. feet of retail space.

It has 77 retail stores in 17 states of the country out of which 3 in Delhi-NCR, 18 in Bihar, 17 in Uttar Pradesh, 7 in Odisha, 4 in Assam, 7 in Jharkhand, 4 in Uttarakhand ,6 in Karnataka,1 in Himachal Pradesh, 1 in Arunachal Pradesh, 3 in Madhya Pradesh, 1 in Tripura, 2 in J&K, 1 each in Rajasthan,Telangana & Goa.

The business idea of the Company is to keep large Variety of Smart, Trendy, Fashionable apparels across categories under one roof. Below are some of the brands from the Company.

  • Godspeed
  • Herrlich
  • Glamora
  • ebellia
  • Honey Brats
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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

V2 Retail Stock Performance

The stock price chart looks interesting is not it. Remember above I said that Company sold Vishal and then created V2 retail in year 2011. Now look the price chart. Note Company had one store to start with in year 2011 and now it has expanded to 77 stores across India.

This fact is clearly outlined by Stock price chart but in simpler way. Stock has been under performer right from start and became penny stock trading less than 10 INR in year 2013 or so. The price chart captures the turn around story beautifully. Stock recovered from the lows of 2013 and touched 500 mark. It has corrected in last year but that is understandable considering the run it had.

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V2 Retail My Opinion

V2 Retail is a Retail Company. I remember Vishal Mega Mart days of the Company. It was popular and I have visited the stores. After selling Vishal brand Company entered V2 retail. It mainly focuses on Apparels. There is big shift between focus area of Company now and during Vishal days.

The Company is now focusing on tier 2 and tier 3 cities and towns. If you see it has presence in most of the states. It is not competing in Metro cities where competition is more and chances of success is tough. Moreover the Competition in Semi Urban areas the smaller towns are less and Company has greater chances of success.

This strategy has well paid off. Company has shown good growth in recent times as reflected by stock prices as well. It has plans to expand more aggressively and take the retail store count to 250 stores across country.

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I assume mostly the Smaller cities will be target audience. Note Apparel market is evergreen sector and in on growth. It does have competition with online presence. But Tier 2 and Tier 3 city is preferring offline experience over online experience.

I am not yet invested into retail sector but is tracking it closely.There are good numbers of Companies listed in the space and is comparing them to get an idea about how well they stack up against each other and other sectors.

In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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