V-Mart Is Motilal Oswal's Top Retail Pick For 2026, Eyes 45% Upside — Check New Target Price

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Motilal Oswal Report

V-Mart Retail Ltd. continues to be a key beneficiary of the shift from unorganized to organized retail and the massive growth opportunity in value fashion.

The company’s improving store productivity, strategic closure of underperforming outlets, and reduced losses in the Unlimited and LR segments have strengthened overall profitability. While V-Mart still trails some peers on margins, this gap offers significant room for expansion.

The brokerage lowers its FY26-28 Ebitda estimates by a marginal 1-2%, while the earnings cut is higher primarily due to higher depreciation (linked to accelerated store additions).

Motilal Oswal expects a CAGR of 18%/27% in revenue/reported Ebitda over FY25-28E, driven by ~13% CAGR in store additions, mid-single-digit same-store sales growth, and further reduction in LR losses.

Despite strong growth and margin expansion potential, V-Mart trades at modest ~19x FY27 pre-INDAS EV/Ebitda (vs 40x for VMM).

Motilal Oswal reiterates Buy rating on V-Mart with revised target price of Rs 1,040, premised on 23x Dec’27E pre-INDAS 116 EV/Ebitda (implies ~12x Dec’27 Ebitda and ~39x Dec’27 EPS).

Scenario analysis indicates compelling risk reward (bull case: Rs 1,250; bear case: Rs 685).

V-Mart is among Motilal Oswal's top picks in the retail sector for 2026.

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