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Orgo-Life the new way to the future Advertising by AdpathwayShares of V2 Retail surged 4 per cent in trade on Monday after Motilal Oswal Financial Services initiated coverage on the stock with a 'Buy' rating.
The stock opened higher at ₹220 and climbed to an intraday high of ₹225.70 on the National Stock Exchange (NSE).
As of 2:50 PM, the stock was trading 3.1 per cent northward at ₹223.25, with nearly three million shares changing hands.
In comparison, the benchmark Nifty 50 index was down 0.6 per cent at 23,753.
Motilal Oswal Financial Services has set a target price of ₹275 for V2 Retail, implying an upside of 27 per cent from the previous close of ₹216.50.
MOFSL said that V2 Retail is a pure-play, offline-first value fashion retailer focused on India’s tier-2/3 markets, catering to aspirational yet price-sensitive households. Its differentiation stems from a focused value-fashion retailer catering to the entire family, with selective lifestyle offerings across 400 stores in more than 300 cities.
A throughput-led cost structure delivers superior margins despite structurally lower gross margins than peers.
The brokerage expects V2 Retail to deliver a CAGR of 40 per cent and 38 per cent in revenue and Ebitda over FY26-29E, driven by 450 store additions, mid-single-digit Same-Store Sales Growth (SSSG), and fixed-cost dilution on a rapidly scaling network.
The brokerage added that SSSG remains the primary earnings driver, with every 1 per cent change in SSSG translating into a 7-11 per cent change in Ebitda and PAT, reflecting the strong operating leverage embedded in the model.
Key risks include execution and site-selection risk from rapid geographic expansion, intensifying competition from national value-fashion players, and higher assortment risk as in-house design scales beyond ~35–40%, potentially impacting sell-through, margins and store returns.
V2 Retail, which commands a market capitalisation of ₹8,149 crore as on September 7, has declined 9 per cent in 2026 so far. In one year, the counter has outperformed the market, rising 36 per cent. In the same period, the benchmark Nifty 50 has declined 4 per cent.
Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.
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