https://www.cnbctv18.com/business/religare-rashmi-saluja-refutes-esop-misuse-claims-19476095.htm
@ Guys- Can someone following this company explain where is this headed to??

History is repeating itself if you look at the chart:

It consolidated throughout in 2021 and then started moving up around the later half of 2022.

The same happened in 2023 where it consolidated and now in the later half of 2024, it’s moving up and all set to give a breakout.

Another reason is the current PE. It used to trade above 100 before 2021 but came down below 60 when the price went below 500 and the profits kept increasing.

Now that company has done so much capex and has promised to double the revenue every three years, the PE will shot up again above 100.

But, this is all my understanding and I am not influencing anyone to make any decision.

V2 Retail – Stores Visit Notes – 14 September 2024

Store 1: Mahipalpur, Delhi
Person interacted with: Mr. Pradeep, Store Manager (and 2 other Assistant Store Managers)

1. I have been with V2 retail for a year now, I was managing Reliance Retail grocery prior to this
   role. I have 22 years of experience in retail, started with Vishal Megamart under the supervision of Mr. Ram Agarwal. Whatever I learnt today, comes from my experience at Vishal Megamart.

2. V2 Retail’s quality is much better than that of Vishal Megamart and other competitors. The prices are cheaper here, and we offer much better quality. Vishal Megamart has higher mix of FMCG, so blended margins would be lower.

3. V-mart’s costing may not be as good as ours since we do our own manufacturing, which helps us in keeping our MRP low. We have 5,000 plus varieties, with 80-85% being our own manufacturing and our own brands. We cater more to the lower middle class and middle class (rickshawalas & hawkers), that is the INR 15-20K income bracket. Vishal Megamart and V-Mart cater to the INR 20-30K income bracket.

4. This store is spread over 11,000 sq ft. and was opened on August 15, 2023. The V-Mart in the same street was opened only 10 days ago. Vishal Megamart in the same street has been here for 10-12 years. We had a much smaller store in the same street, but looking at the demand, we shifted to this large store, we shut down that small store only in the month of July, 2024.

5. The customer segment for V2 and Zudio is not the same. The customers are conscious to enter the premium looking stores of Zudio. They get stock weekly once into the store and they don’t bring back the best-selling stock. Once the stock is done, it is done. We don’t work on that model. Our inventory system is more digital now. Zudio also does not market itself enough the class of people we cater to. We at V2 do pamphlets/ leaflets in newspapers, local paper advertisements, etc.

6. We give discount to dead stock and bunch them together and display them in one section. We don’t mind selling the dead stock at slight loss, because slight loss is better than 100% loss. We create separate section to house this dead stock. In Vishal Megamart of V-mart, there is no concept of dead stock, they give discounts based on the amount you purchase (for example – INR 100 discount on purchase of INR 1,000).

7. This store has 37 staff. 5-6 would be in management, 4-5 cashiers, 14-15 sales staff, and some in inventory management. We give all tasks to all staff members, so that they are trained in all aspects. Sales staff would be making around INR 17,500 per month with a minimum incentive of 5-10% depending on store performance. The store rent is INR 6 lakhs with electricity being around INR 2 lakhs per month.

8. We did INR 1.72 crores in August 2024; we had a target of INR 1.5 crores. We have a
   revenue target of INR 1.07 crores for September 2024, and we have already done INR 57 lakhs in first 13- 14 days. We do INR 10 lakhs on Sunday, and other days average would be INR 5 lakhs. We did INR 1.85 crores in the Diwali month last year. We would be able to do INR 2.25 crores easily this Diwali month due to the potential we got. We did INR 4.5 crores in Q1FY25, with July 2024 clocking INR 1.25 crores. Our store is the best store in the cluster (around 30 stores in our cluster). The Vishal Megamart in the same street is doing INR 2 crores plus including FMCG, which is a low margin business. If Reliance opens its stores here, Vishal Megamart may go for a toss.

9. The working hours are pretty high in Vishal Megamart, so some employees did end up joining us here. Even my work life when I was with Vishal Megamart was pretty hectic. Since we do more FMCG in Vishal Megamart, there are more things to deal with. Vishal Megamart follows clothes folding model, while we hang our clothes in V2 retail, so this takes more time for the employees. In V2, we close the store by 11pm on a very hectic day as well, but it takes 1am at Vishal Megamart.

10. The two ASMs (we spoke to) started on the sales floor 3 years back in V2, and they have been continuously promoted. V2 conducts examinations every 6 months to upgrade its employees to better roles.

11. Mr. Ram Agarwal has a sharp decision-making power; I have been seeing him from Vishal
    Megamart days. He always wants everyone in the store to learn. We all were trained in SAP when we had no clue what was SAP back then. He lets everyone learns and wants all the staff to improvise on their skills. Right now, both Mr. Ram Agarwal and Mr. Akash Agarwal are taking part in the company.

12. We have 6 stores in Delhi right now, with around 5 stores in the pipeline already.

Store 2: Kapashera, Delhi
Person interacted with: Mr. Mithilesh Singh, Store Manager

1. I have been the store manager here for 2 years now, this store is a 8 year old store and the
   corporate office is located on the top of this store.

2. In August 2024 – we did sales of INR 2.5 crores. We generate average bills of around 800 per day. In the month of Diwali, we should be able to do INR 4 crores, we did INR 3 crores in the last year Diwali month.

3. Mr. Ram Agarwal’s mind works differently, and he works really hard. He comes on time and leaves late from the office since he works so much. He is still the backbone of the company. Mr. Ram Agarwal speaks to me often, not Mr. Akash Agarwal. After Mr. Akash Agarwal has come in, the collection has changed a lot. Since Mr. Akash Agarwal has been in the company for 10 years, he is contributing a lot now. Mr. Akash Agarwal comes to office daily whenever he is here.

4. We have 43 staff. The sales floor staff draw a salary of around INR 17-18K.

5. The pricing at V-Mart is higher, and they don’t have as much stock as ours. Mr. Ram Agarwal’s philosophy is to stock up as much as we can. We increased the shelf size, by placing more on the top of existing shelves. We increased the height of the shelfs from 4 feet to 7 feet, which was a masterstroke (this was Mr. Ram Agarwal’s idea). Now, competitors are also following the same technique.

6. We have around 5-6 stores in pipeline for the Delhi market.

7. We are growing at 30-40% YoY in Q2FY25 in this store. We will be able to continue this momentum since we have Diwali in the upcoming quarter.

8. Zudio – We are still at the top of the market inspite of Zudio opening around. Our premium
   customer base also grown significantly for this store (income of INR 8-10 lakhs per annum)

The market price is already at 68 and guess no one likes price dropping down too much…

But the supply side issue still persists
Granules as you can see is in back to back trouble firstly data security issue, Supply issue
, now USFDA issue

The clouds are still not yet clear… as stated above their other business are doing well that’s all…