Can V-Mart Retail share cross ₹1,000 mark?

Synopsis: Motilal Oswal has recommended a “Buy” rating on V-Mart Retail Limited with a bull-case target price of ₹1,250, indicating an upside potential of around 80.12 percent.

This small-cap stock, engaged in value retailing of affordable apparel, footwear, home essentials, FMCG, and general merchandise through more than 533 stores in tier II/III cities across India, is in focus after Motilal Oswal gave a bull case target of Rs. 1,250, which has an upside potential of 80.12 percent.

With a market capitalization of Rs. 5,513.07 crore, the shares of V-Mart Retail Limited were currently trading at Rs. 694 per equity share, down nearly 3.01 percent from its previous day’s close price of Rs. 715.55. 

What is the News?

Motilal Oswal, a prominent brokerage firm, has recommended a “Buy” call on V-Mart Retail Limited with a target price of Rs. 1,040 per share, indicating an upside potential of 49.86 percent from its current market price.

In the Bull case, Motilal Oswal expects a target price of Rs. 1,250 per share, with an upside potential of 80.12 percent. In the Bear case, Motilal Oswal expects a target price of Rs. 685 per share, with a downside potential of 1.44 percent.

Reason for the Target:

Motilal Oswal remains positive on V-Mart Retail, driven by improving rural consumption trends and rising aspirational spending, supported by government initiatives that have increased disposable incomes. The company continues to benefit from the shift from unorganized to organized retail and a growing preference for one-stop value fashion stores in tier 2+ towns in India. 

V-Mart is expected to deliver a healthy 18 percent revenue CAGR over FY25-28, led by consistent 13 percent annual store additions and mid-single-digit same-store sales growth.

Profitability is projected to improve meaningfully, with a 290 basis point expansion in pre-Ind AS EBITDA margins to 7.2 percent by FY28, driven by lower LimeRoad losses, better productivity at new Unlimited stores, and operating leverage. Despite strong growth visibility and margin expansion, the stock trades at a reasonable 19x FY27 pre-Ind AS EV/EBITDA, making the outlook attractive.

Current Store Capacity:

V-Mart Retail continued its steady store expansion in FY26 compared to FY25. The total store count increased from 467 in FY25 (YTD) to 533 in FY26 (YTD), reflecting a growth of around 14 percent year-on-year.

During H1 FY26, the company opened 40 new stores, including 28 V-Mart stores and 12 Unlimited stores, while 4 stores were closed (2 V-Mart and 2 Unlimited). As of FY26, area-wise distribution shows a strong presence in Tier 3 cities with 286 stores, followed by Tier 1 with 122 stores, Tier 2 with 63 stores, and Tier 4 with 62 stores, underlining V-Mart’s strategic emphasis on deeper penetration in Tier 3 and emerging markets.

In H1 FY26, V-Mart Retail continued to strengthen its state-wise presence, led by Uttar Pradesh with 162 stores, followed by Bihar (76), Tamil Nadu (33), Jharkhand (31), and Rajasthan (30). Other key states include West Bengal and Karnataka (21 each), with steady expansion across Uttarakhand, Telangana, and Madhya Pradesh, supporting growth in tier 2 and tier 3 markets.

Company Overview:

V-Mart Retail Limited was established in 2002 as Varin Commercial Private Limited in West Bengal, India, and opened its first store in Ahmedabad, Gujarat, in 2003. The company was founded by Lalit Agarwal, and it rebranded to V-Mart Retail Private Limited in 2006.

V-Mart is engaged in value retailing, offering affordable fashion and family essentials through small-format hypermarkets that provide a one-stop shopping experience.

It follows a ‘value retailing’ model targeting middle-class and aspirational consumers in underserved smaller towns, blending private labels with market brands for competitive pricing and quality. The company sells apparel (men’s, women’s, kids’), footwear, home furnishings, general merchandise like toys and appliances, FMCG, kirana items, and accessories.

Recent Quarter Results:

Coming into financial highlights, V-Mart Retail Limited’s revenue has increased from Rs. 660.97 crore in Q2 FY25 to Rs. 806.87 crore in Q2 FY26, which has grown by 22.07 percent. The net loss of the company has reduced from Rs. 56.51 crore in Q2 FY25 to Rs. 8.87 crore in Q2 FY26. V-Mart Retail Limited’s revenue has grown at a CAGR of 25 percent over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 8.50 percent and 3.08 percent, respectively. V-Mart Retail Limited has an earnings per share (EPS) of Rs. 14.5, and its debt-to-equity ratio is 0.95x.

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