Synopsis:
Shares of Vmart retail are in focus after Anand Rathi Wealth projects the company’s stock to rise by another 52 percent, citing improved profitability, better margins, and strong cash flows.
With a market capitalization of Rs 6,306 crores, the shares of V-Mart Retail Ltd are currently trading at Rs 795 per share, down by 30 percent from its 52-week high of Rs 1,129.33 per share. Over the past five years, the stock has delivered a return of only 78 percent.
Leading brokerage house Anand Rathi Wealth has assigned a Buy call on Vmart with a target price of Rs 1,208 per share, signalling an upside potential of 52 percent from its current level.
V-Mart Retail has reported a notable boost in profitability for Q1 FY26, with its EBITDA margin climbing by 166 basis points YoY to reach 14.3 percent. This improvement is largely attributed to reduced losses in Limeroad, enhanced performance in offline stores, and effective cost management. While same-store sales growth (SSSG) was a modest 1 percent, impacted by early Eid celebrations, sluggish demand, and an early monsoon.
Inventory management has also seen progress, with inventory days decreasing to 93, while foot traffic increased by 11 percent and billing memo growth hit 18 percent year-on-year. V-Mart’s core revenue rose by 14 percent, and the Unlimited brand saw an 11 percent increase, despite a decline in average selling prices.
Management is optimistic about steady revenue and EBITDA growth in FY26, strengthened by improved product offerings, competitive pricing, and advancements in supply chain and technology. It also plans to add 65 net stores in FY26, where 13 stores have already been added.
Anand Rathi forecasts a revenue CAGR of around 17 percent and an EBITDA CAGR of approximately 22 percent from FY25 to FY28, with PAT expected to surge by about 77 percent from a low base with strong cash flow generation.
Financial Highlights
The retail chain reported a revenue of Rs 885 crore in Q1 FY26, up by 13 percent from Rs 786 crore in Q1 FY25. Additionally, the company reported a net profit growth of 183 percent to Rs 34 crore in Q1 FY26 as compared to Rs 12 crore in the same quarter of the previous year.
The stock delivered a poor ROE and ROCE of 3.08 percent and 8.50 percent respectively, and is currently trading at a P/E of 118.74x as compared to its industry average of 63.54x.
V-Mart Retail Limited runs a chain of budget-friendly retail stores all over India. They offer a diverse selection of clothing for everyone—men, women, and kids—covering everything from casual and ethnic styles to formal and activewear. But that’s not all; the company also has a variety of innerwear, footwear, fashion accessories, and home essentials. Beyond clothing, V-Mart stocks general merchandise like personal care items, packaged foods, staples, toys, and home furnishings, making it a go-to spot for all your family’s everyday needs.
Written by Satyajeet Mukherjee
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