Electronics Mart Q1 Review - Inline With Positive Ebitda Margin In The North; Maintaining A Buy: Anand Rathi

Anand Rathi Report

Electronics Mart’s Q1 revenue growth/Ebitda margin came in line with our ~17%/7.8% estimates. Consumer spending rose strongly, led by demand for cooling products, further boosted by heat. Better working capital led by reduced stocks resulted in pre-INDAS operating cash flow of Rs 4.8 billion (Rs 3.3 billion a year ago).

Management guided to double-digit FY25 revenue growth, driven by volume growth (not much value growth except for product upgradations). The company is focused on optimizing store operations and enhancing stock management to maintain cost competitiveness. It added 10 MBOs incl. three in the NCR; it plans to add another 25 in the rest of FY25, incl. five-six in the NCR pre- Diwali.

Our FY25e/26e revenues are unchanged. However, we raise Ebitda 2.7% each year on higher, 7.5-7.8%, FY25 Ebitda margin guidance (~7% earlier). We retain our Buy, at a 12-mth, Rs 279 target price (Rs 268 earlier), 35 times FY26e price to earning.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.