V-Mart Retail shares zoomed 12% to hit record highs; is more steam left in this mutibagger?

Shares of V-Mart Retail Ltd jumped 11.62 per cent in Tuesday's trade to scale their all-time high value of Rs 4,495.35. The stock was last seen trading 9.30 per cent higher at Rs 4,402.20. At this price, it has delivered multibagger returns to investors by rallying 117.68 per cent on a year-to-date (YTD) basis.

A few technical analysts suggested that investors may consider booking profits at current levels. On the level-specific front, support could be seen at Rs 4,350, followed by 4,113 and Rs 3,965 levels. Immediate resistance may be found at Rs 4,500.

Kushal Gandhi, Technical Analyst at StoxBox, said, "The recent price action of V-Mart exhibited a significant surge over the past seven trading sessions, accompanied by increased trading volumes. As a result, the current price level appears to be considerably distant from its average, suggesting a potential for mild profit booking or consolidation. However, the underlying trend demonstrates positivity, supported by improving price strength and heightened buyer demand. Given the extended price level, the stock does not present a favourable risk-to-reward ratio for fresh entry. Therefore, we advise refraining from initiating new positions in the stock. For existing investors, it is recommended to maintain current holdings with a trailing stop loss set at Rs 3,965 for an upside target price of Rs 5,050."

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said immediate resistance on the counter will be at Rs 4,500 and a decisive close is required for more upside. Support will be at Rs 4,350 level, Singh added.

Sebi-registered research analyst AR Ramachandran said, "V-Mart Retail's stock is bullish but also very overbought on daily charts with next resistance at Rs 4,500. Investors should book profits at current levels as a daily close below support of Rs 4,113 could lead to Rs 3,490 in the near term."

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 79.88. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a negative price-to-equity (P/E) ratio of 127.10 against a price-to-book (P/B) value of 10.66. Earnings per share (EPS) stood at (-)8.39 with a return on equity (RoE) of (-)31.69. Promoters held a 44.33 per cent stake in V-Mart Retail as of June 2024.