Listed on February 2, 2013, this small-cap retailer witnessed a decline in its share price initially, up to four months. Soon after that, the stock surprised Dalal Street by racing and hitting record highs. The stock in the last 7 years has jumped 1,042 percent to its current market price on the back of store expansion and geographical spread. Meet V-Mart.

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The affordable multi-brand retailer has been steadily moving towards a big rally given its consistent earnings growth and stock price surge. On a year-to-date basis, the stock has already delivered returns of about 47 percent to its shareholders.

V-Mart's earnings have also been consistent, just like its surge in the share price. The stock reported net profit growth of 39 percent YoY at Rs 58.22 crore for the quarter ended December 31, 2019. Consolidated total income rose 20 percent YoY to Rs 562.58 crore. The company added 19 stores and closed 1 in the same quarter, totaling to 257 stores to date.

In a press release, the V-mart said, “The strong EBITDA was a result of several efficiency enhancement initiatives undertaken by the company, with a sharp focus on protecting margins in a constrained operating environment.”

“We are committed to and focused on our long-term strategy for delivering value fashion to aspiring India while being resilient and agile in adapting business execution to the changing environment,” said Lalit Agarwal, CMD, V-mart Retail.

Speaking on the sector, Kaustubh Pawaskar of Sharekhan said that the growth in the retail sector is expected to pick up in the first half of fiscal 2021, because of a likely improvement both in consumer sentiment and liquidity environment.

He further added, “Companies having sustained same-store-sales growth, steady improvement in operating margins and stable balance sheet will continue to trade at a premium to companies having volatile profitability and stress balance sheet.”