CFO Premchand Devarakonda said the company is focusing on organic growth, excluding the franchisee model.
The expansion includes six stores in the Delhi cluster and the remainder in existing markets like Andhra Pradesh and Telangana, with a strong focus on tier-3 and tier-4 cities, where agriculture-driven economies and a growing market offer significant potential.
Electronics Mart is targeting a 15% revenue growth for 2024-25 (FY25), driven by a combination of 6-8% same-store sales growth and contributions from its expanding store network.
The retailer, which has opened 60 new stores over the past few years, is seeing solid growth as these locations mature.
“For next couple of years if Delhi that cluster does exceedingly well, so it might improve by another three percentage points. That means our top line growth might go up to 18% so that is our target, between 15 and 18%,” Devarakonda, said.
The company also aims to maintain its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin above 7%.
Brokerage firm Nuvama recently initiated coverage on Electronics Mart with a buy rating and a target price of ₹237 per share, highlighting the strong cash flow from Telangana, which is expected to support the company’s expansion into the NCR region.
As of July-September 2024 (Q2FY25), the company holds about ₹49 crore in cash and cash equivalents, and operates 177 stores.
With a leadership position in South India, it has 151 stores across Andhra Pradesh and Telangana.
The company, which has a market capitalisation of ₹6,937 crore, has seen its shares decline 20% over the last year.
