V-Mart Retail Research Report By Religare

We meet the management of VMART and following were the key takeaways: (1) Demand remains muted but should revive post a good monsoon. (2) Improved demand, a normal winter and stable commodity prices should rev up SSSg from Q3FY17 onwards. (3) The company plans to add ~20 stores in FY17. While we see strong earnings growth and SSSg improvement ahead, we pare estimates to factor in a slower-than-expected demand revival. Maintain BUY; Mar’17 TP Rs 620 (Rs 685 earlier).