V2 Retail Shares Rise 3.5% After Motilal Oswal Initiates Coverage With ‘Buy’ Rating

New Delhi, September 7, 2026; Shares of V2 Retail rose sharply on Monday after Motilal Oswal Financial Services initiated coverage on the value-fashion retailer with a ‘Buy’ rating and a target price of ₹275, implying an upside of around 27% from the stock’s previous closing price.

At around 2:25 pm, V2 Retail shares were trading 3.7% higher at ₹224.49 on the NSE. The stock touched an intraday high of ₹225.70 and a low of ₹217.69, with more than 31.6 lakh shares changing hands on the NSE.

Motilal Oswal expects V2 Retail to deliver strong growth over the coming years, projecting revenue to expand at a compounded annual growth rate (CAGR) of 40% between FY26 and FY29. EBITDA is estimated to grow at 38% CAGR during the period, while net profit is expected to rise at a 35% CAGR.

According to the brokerage, the company’s growth is likely to be supported by the addition of nearly 450 stores, around 5% same-store sales growth and improving operating leverage as its retail network expands.

V2 Retail currently operates around 400 stores across more than 300 Tier-2 and Tier-3 cities. Motilal Oswal expects the retailer’s store network to expand to approximately 770 outlets by FY29, driven by entry into new markets and deeper penetration of existing clusters.

The brokerage highlighted V2 Retail’s strong store economics, cluster-led expansion strategy and significant growth opportunities in underpenetrated markets as key positives. It also pointed to the company’s focus on aspirational and price-sensitive consumers in smaller cities.

V2 Retail has a family-oriented value-fashion proposition, with around 90% of its merchandise comprising private-label products. In-house designs account for approximately 35–40% of its product mix, giving the company greater control over merchandise and product economics.

Same-store sales growth is expected to remain an important factor for the company’s earnings performance. Motilal Oswal estimates that every 1% increase in same-store sales growth could potentially lift EBITDA and profit by around 7–11%.

However, the brokerage expects V2 Retail’s EBITDA margin to remain around 9% through FY29 as rapid store expansion could temporarily put pressure on operating leverage.

Motilal Oswal also identified several risks, including execution challenges and site-selection issues associated with the company’s aggressive expansion plans. Increasing competition from other domestic value-fashion retailers could also affect growth prospects.

The brokerage further cautioned that a higher contribution from in-house designs beyond the current 35–40% range could increase assortment-related risks. This could potentially affect margins, product sell-through rates and returns at the store level.

Despite these risks, Motilal Oswal remains positive on V2 Retail’s long-term prospects, citing its scalable store model, private-label portfolio, presence in Tier-2 and Tier-3 markets and scope for deeper penetration as key factors supporting its ‘Buy’ recommendation.