Stock to Buy: This retail stock may turn into a portfolio star, analysts see over 50% upside; check target price

Shares of V-Mart Retail gained more than 5 per cent on Wednesday to trade around Rs 815, buoyed by the company’s solid performance in the September quarter. The multi-format retailer reported a 22 per cent increase in revenue year-on-year to Rs 807 crore, while operating profit climbed 85 per cent to Rs 71.5 crore. Operating margins also improved sharply to 8.9 per cent from 5.8 per cent a year ago.

Strong quarterly show across categories

The company’s core apparel business remained the main growth driver, contributing about 77 per cent of total revenue. The FMCG and non-apparel segments added 12 per cent and 11 per cent, respectively. Same-store sales growth came in at 11 per cent, supported by higher footfall and improved conversion rates. Visitor numbers rose from 17 million to 19 million, while the conversion ratio edged up to 47 per cent from 45 per cent. The average selling price increased 4 per cent to Rs 214.

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Including its Unlimited chain, which V-Mart had acquired earlier, both formats recorded an 11 per cent growth in same-store sales, with overall volume up 6 per cent. As of September 30, 2025, the company operated 533 stores—438 under V-Mart and 95 under Unlimited. During the quarter, 25 stores were opened and two were shut.

On the digital front, LimeRoad, V-Mart’s online fashion platform, continued to narrow losses. The business reported a 53 per cent reduction in losses year-on-year to Rs 34 million during the quarter, reflecting better operational efficiency.

Expansion plan revised upward

Encouraged by strong quarterly numbers, the management has stepped up its expansion drive. The company now plans to open 75 new outlets in FY26, compared to its earlier target of 65. Already, 40 stores have been added in the first half of the fiscal, including 28 V-Mart and 12 Unlimited stores.

Should you buy, sell or hold: Brokerages stay positive

Brokerage houses remain upbeat about the company’s growth prospects.

Nuvama Institutional Equities has reiterated a BUY call with a target price of Rs 1,183.

Motilal Oswal Financial Services also maintained a BUY rating and set a target of Rs 1,085.

Systematix Institutional Equities retained a HOLD stance with a target of Rs 874.

At the previous close of Rs 775, these projections suggest a potential upside of up to 53 per cent. The stock’s 52-week high stands at Rs 1,037, while its low is Rs 675. The lifetime high of Rs 1,212 was recorded in November 2021.

Management confident of steady momentum

In the post-earnings call, management sounded confident about sustaining growth in Q3FY26, supported by festive demand and the upcoming wedding season. Newly opened stores, they said, are performing better than expected, demonstrating stronger operating efficiency.

The company has also begun adding cosmetics and artificial jewellery to its store offerings, expanding its non-apparel portfolio. The contribution of private labels has risen to 67 per cent of total revenue. Management added that the focus remains on cutting LimeRoad’s losses further in the coming quarters.