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

V-Mart’s improving store productivity, strategic closure of underperforming outlets, and reduced losses in the Unlimited and LR segments have strengthened overall profitability..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..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..Click on the attachment to read the full report:.Indigo Paints Shares: Motilal Oswal Maintains 'Buy' As Growth Outlook Improves — Check Revised Target Price.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.

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

While V-Mart still trails some peers on margins, this gap offers significant room for expansion, adds the brokerage.

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