{"id":22735,"date":"2025-03-25T15:20:35","date_gmt":"2025-03-25T09:50:35","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=22735"},"modified":"2025-03-25T15:20:35","modified_gmt":"2025-03-25T09:50:35","slug":"relationship-of-v-mart-retail-limited-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=22735","title":{"rendered":"Relationship of V-Mart Retail Limited with Nifty 50"},"content":{"rendered":"

Title<\/span><\/b>: Relationship of V-MART Retail limited with Nifty 50.<\/span><\/p>\n

Author:<\/span><\/b> Vaishnavi Mohod<\/span><\/p>\n

Introduction: <\/span><\/b><\/p>\n

V-Mart Retail Limited is a leading Indian value fashion and retail chain, catering primarily to tier 2, tier 3, and rural markets. Established in 2002<\/span> by Lalit Agarwal<\/span>, the company opened its first store in 2003<\/span> and has since expanded to over 400 stores<\/span> across 26+ states<\/span>. V-Mart offers a wide range of affordable fashion apparel, footwear, home furnishings, and general merchandise, focusing on middle-class and lower-income consumers. Its low-cost, high-efficiency business model<\/span> ensures competitive pricing while maintaining quality. The company is listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)<\/span> under the ticker symbol “VMART”<\/span>, though it is not part of the NIFTY 50<\/span>. V-Mart has strengthened its market presence through strategic acquisitions, including the purchase of Unlimited<\/span>, a fashion retail chain previously owned by Arvind Lifestyle. With a focus on expansion, digital transformation, and customer-centric innovations, V-Mart continues to be a key player in India’s organized retail sector, catering to the growing demand for affordable fashion in smaller cities and rural areas.<\/span><\/p>\n

Objective<\/span><\/b>: To find out Beta of V-MART retail Limited and its significance<\/span>.<\/p>\n

Literature Review:<\/span><\/b><\/p>\n

V-Mart Retail: Growth and Market Performance<\/span><\/b>:<\/p>\n

Shaikh, S., & Agrawal, A .et.al.,(2020)<\/span><\/b> state that V-Mart Retail has a strong presence in tier 2, 3, and 4 cities, benefiting from lower rental costs and efficient sourcing. As of December 2019, promoters held 52% of shares, while DIIs increased their stake to 10.3%, and FIIs held 26.1%. The stock traded between INR 1604 \u2013 INR 2867, with a target price of INR 2,650 (12% upside). Expanding rapidly, V-Mart added 46 stores in FY20, reaching 257 stores across 2.14 million sq. ft. Despite economic challenges, it achieved 2% same-store sales growth (SSSG) in Q3FY20, with a projected 3%-6% SSSG for FY21-FY22, positioning itself as a key player in India\u2019s value retail market.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Market Expansion for V-Mart Retail Limited:<\/span><\/b><\/p>\n

Thakur and Kaur.et.al., (2020)<\/span><\/b> analyze the digital consumer landscape in Tier 2 cities of North India, emphasizing the increasing influence of e-commerce on retail consumption. Their study highlights the growing preference for online shopping, which presents both challenges and opportunities for traditional retailers like V-Mart Retail Limited. While V-Mart has established its market share through affordability, localized product offerings, and a strong physical presence, rising digital adoption intensifies competition from online retailers offering greater convenience and discounts. To sustain its market position, V-Mart must enhance its digital engagement by strengthening e-commerce capabilities, leveraging social media marketing, and utilizing data-driven insights to tailor its offerings. By balancing offline and online strategies, V-Mart can effectively adapt to changing consumer behavior while maintaining its value-driven retail approach in semi-urban markets.<\/span><\/p>\n

Data collection: <\/span><\/b><\/p>\n

V-Mart retail limited and Nifty 50 data was downloaded from NSE site from the period 01\/01\/2024 to 31\/12\/2024 and the data was manipulated to find out the Friday closing time. Weekly returns were calculated. Weekly result of Nifty 50 X and Weekly returns of V-Mart retail LTD. Is Y. Y was regressed on X.<\/span><\/p>\n

Data Analysis:<\/span><\/b><\/p>\n

Equation:<\/span><\/b> V-Mart Retail LTD= 0.0114+1.0259 Nifty 50<\/span><\/p>\n

N=47, R2<\/sup>=0.0865, F=4.26<\/span><\/p>\n

Interpretation:<\/span><\/b><\/p>\n

The regression analysis shows a weak positive relationship between the independent and dependent variables, with a Multiple R of 0.294. The R Square value of 0.086 indicates that only 8.65% of the variability in the dependent variable is explained by the independent variable, suggesting that other factors play a role. The model is statistically significant, as shown by the ANOVA test (F = 4.26, p = 0.0448), but its predictive power is limited.<\/span><\/p>\n

Examining the coefficients, the intercept (0.0114) is not statistically significant (p = 0.174), meaning it does not contribute meaningfully to the model. However, X Variable 1 has a coefficient of 1.0259 with a p-value of 0.0448, indicating that it significantly impacts the dependent variable. This means that for each unit increase in X Variable 1, the dependent variable is expected to increase by about 1.026 units. The confidence interval (0.0247 to 2.0272) further confirms this significance.<\/span><\/p>\n

In summary, while the model is statistically valid, it explains only a small portion of the variance, implying that additional predictors may be needed for better accuracy.<\/span><\/p>\n

Conclusion: <\/span><\/b><\/p>\n

The Beta (\u03b2) value<\/span><\/strong> for the given data is 1.026<\/span><\/strong>. This indicates that the stock tends to move in line with the market but with slightly higher volatility. A \u03b2 value close to 1 suggests that the stock’s returns are strongly correlated with market returns. \u200b<\/span><\/p>\n

References:<\/span><\/b><\/p>\n

1.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Shaikh, S., & Aggarwal, A.et al. (2020).<\/span><\/b> CMP: INR2, 370 TP: INR2, 650 (+ 12%) Neutral Strong profit growth despite weak macro conditions.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

2.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Thakur, and Anupriya Kaur.et al. (2020)<\/span><\/b> Digital Consumer in Tier 2 Cities of North India-Analysing and Discerning Online Behaviour. Diss. Jaypee University of Information Technology, Solan, HP, 2020.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Title: Relationship of V-MART Retail limited with Nifty 50. Author: Vaishnavi Mohod Introduction: V-Mart Retail Limited is a leading Indian value fashion and retail chain, catering primarily to tier 2, tier 3, and rural markets. Established in 2002 by Lalit Agarwal, the company opened its first store in 2003 and has since expanded to over… Continue reading Relationship of V-Mart Retail Limited with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139769,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22735","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22735","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/139769"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22735"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22735\/revisions"}],"predecessor-version":[{"id":22736,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22735\/revisions\/22736"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22735"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}