Nuvama's Top Picks In Retail Space: Titan, Jubilant Foodworks, Aditya Vision, VMart And More

The retail sector delivered a mixed performance during the festive season, with select pockets emerging as bright spots, according to Nuvama. The brokerage has identified Titan Company Ltd., Jubilant FoodWorks Ltd., V-Mart Retail Ltd., and Aditya Vision Ltd. as its top picks, highlighting resilience in jewellery, quick-service restaurants, electronics, and value fashion retail. 

Looking ahead to the third quarter, Nuvama expects weak consumer sentiments to persist, but the ongoing wedding season could offer some support for marginal improvement.

Titan registered a 25% year-on-year growth in its core jewellery segment, driven by high-single-digit growth in new buyers and increased ticket prices. Like-to-like growth stood at 22% for the quarter. The broader jewellery sector is expected to sustain strong momentum, supported by a wedding-heavy calendar in the second half of the year.

Other players such as Kalyan Jewellers India Ltd., Senco Gold Ltd., and P N Gadgil Jewellers Ltd. are also projected to post robust growth numbers, according to Nuvama. Additionally, average gold prices have surged by approximately 30% year-on-year in rupee terms, further boosting sector performance.

The QSR segment is expected to report combined revenue growth of 39% year-on-year, driven primarily by store additions and acquisitions led by Jubilant and Devyani International Ltd. However, same-store sales growth remains muted, with most players recording low-single-digit negative to flat growth.

Jubilant, however, achieved 12.5% like-for-like growth, translating into a 19% year-on-year standalone revenue increase, said Nuvama. Delivery channels are expected to remain the primary driver of growth. While most QSR players face margin pressures due to higher operational costs, Jubilant is anticipated to maintain stable year-on-year margins.

Electronics retail witnessed strong initial demand during the festive season, but growth momentum tapered off in the latter half of the quarter. Aditya Vision is projected to deliver strong results, supported by sustained demand and effective cost management.

In contrast, Electronics Mart India Ltd's growth remains heavily reliant on store expansions while facing headwinds in same-store sales growth, according to Nuvama. Margins for both players are expected to remain flat year-on-year due to favourable product mix and cost optimisation.

The apparel segment shows a mixed performance, with value fashion outperforming premium segments. VMart reported same-store sales growth of 10% for the third quarter of fiscal 2025, with topline growth of approximately 16% year-on-year. 

Trent continues to outperform peers, driven by accelerated store expansions and strong same-store sales growth, supported by its strategic late entry into the end-of-season sales period. However, premium players like Madura Fashion & Lifestyle and Shoppers Stop are likely to witness continued sluggish growth due to subdued consumer sentiments, the note said.