V-Mart Retail shares slip 6% despite strong Q4 results, bonus issue announcement

Synopsis

V-Mart Retail shares experienced a decline of 6.2% despite positive financial news. The company reported a net profit of Rs 19 crore for the March 2025 quarter, a significant improvement from the previous year. Revenue also increased by 17%. The board approved a 3:1 bonus share issue. However, the board did not recommend dividend.

Shares of V-Mart Retail fell as much as 6.2% on Monday to Rs 3,161.15 on the BSE, even as the company reported a turnaround in its financial performance for the March 2025 quarter and announced a 3:1 bonus share issue.

For the quarter ended March 2025, the value fashion retailer posted a net profit of Rs 19 crore, a sharp reversal from a loss of Rs 39 crore in the same quarter a year earlier. Revenue for Q4FY25 rose 17% year-on-year to Rs 780 crore, up from Rs 669 crore in the March 2024 quarter.

Operational performance also improved, with earnings before interest, tax, depreciation and amortisation (EBITDA) rising to Rs 68 crore in the fourth quarter of FY25 from Rs 40 crore a year ago.

Meanwhile, the company’s board of directors approved a bonus share issue in the ratio of 3:1. For every one existing fully paid-up equity share of Rs 10 each, shareholders will receive three additional shares of the same face value. The bonus issue is subject to shareholder approval.

The record date for determining bonus share eligibility will be announced later. Investors must own shares at least one trading day prior to the record date to qualify for the bonus.

The board did not recommend a dividend for the financial year 2024–25, opting to retain earnings to support the company’s future growth initiatives.

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Despite a 45% gain over the past year, V-Mart Retail shares have fallen more than 9% in the last three months. The stock is currently trading below six of its eight key daily moving averages—the 5, 10, 20, 100, 150, and 200-DMA—suggesting prevailing bearish momentum.

The stock’s Relative Strength Index (RSI) stands at 64.6, indicating it is neither oversold nor overbought.

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