V-Mart, DMart: Axis Securities' top 2 retail stock picks; here are target prices
Axis points out that V-Mart’s EBITDA grew significantly by 85.2 per cent year-on-year to Rs 72 crore, driven largely by improved gross margins and a 53 per cent reduction in Lime Road losses.
- Nov 21, 2025,
- Updated Nov 21, 2025 1:04 PM IST
In its latest sector note, Axis Securities has maintained a bullish outlook on the retail segment, highlighting that the structural story to continue is backed by rising disposable incomes and rapid formalisation.
Identifying resilience in the discretionary segment, the brokerage has tagged V-Mart Retail and Avenue Supermarts (DMart) as its top conviction ideas. Axis Securities notes that despite a sluggish demand environment in certain pockets, most discretionary categories have sustained double-digit revenue growth.
V-Mart Retail | Buy | Target Price: Rs 900
Axis Securities has a 'Buy' recommendation on the value retailer with a target price of Rs 900. The brokerage highlights the company’s resilient performance in Q2FY26, where it reported a 22 per cent year-on-year revenue growth. While the quarter saw some impact due to temporary GST transitory issues and unseasonal rains in core Puja markets, the operational metrics remained robust, it said.
Axis points out that V-Mart’s EBITDA grew significantly by 85.2 per cent year-on-year to Rs 72 crore, driven largely by improved gross margins and a 53 per cent reduction in Lime Road losses. On the expansion front, the retailer continues to be aggressive, having added 17 new stores and 6 Unlimited outlets in the quarter.
"V-Mart is well-placed to benefit from rural recovery and market share gains from unorganised players," Axis said, adding that the management has guided for around 75 new store additions in FY26.
Avenue Supermarts (DMart) | Buy | Target Price: Rs 4,960
The brokerage has pinned a target price of Rs 4,960 on Avenue Supermarts, citing its consistent revenue growth and strategic pivots. DMart reported approximately 15.5 per cent year-on-year revenue growth in Q2FY26, supported by increased footfalls. Axis Securities views the company's recent investment in 'D-Mart Ready' as a strategic move that will strengthen its position in the competitive online grocery market.
The report emphasises that DMart is undergoing a "clear course correction" by focusing on reviving the high-margin General Merchandise & Apparel (GM&A) segment. The brokerage note observes that “with consumer demand improving, macroeconomic conditions stabilising... these initiatives are well-aligned to support recovery," it said.
Furthermore, the management has indicated that following recent GST reforms, the company has passed on the benefits of rate reductions to customers wherever applicable, a move expected to aid volume growth.
In its latest sector note, Axis Securities has maintained a bullish outlook on the retail segment, highlighting that the structural story to continue is backed by rising disposable incomes and rapid formalisation.
Identifying resilience in the discretionary segment, the brokerage has tagged V-Mart Retail and Avenue Supermarts (DMart) as its top conviction ideas. Axis Securities notes that despite a sluggish demand environment in certain pockets, most discretionary categories have sustained double-digit revenue growth.
V-Mart Retail | Buy | Target Price: Rs 900
Axis Securities has a 'Buy' recommendation on the value retailer with a target price of Rs 900. The brokerage highlights the company’s resilient performance in Q2FY26, where it reported a 22 per cent year-on-year revenue growth. While the quarter saw some impact due to temporary GST transitory issues and unseasonal rains in core Puja markets, the operational metrics remained robust, it said.
Axis points out that V-Mart’s EBITDA grew significantly by 85.2 per cent year-on-year to Rs 72 crore, driven largely by improved gross margins and a 53 per cent reduction in Lime Road losses. On the expansion front, the retailer continues to be aggressive, having added 17 new stores and 6 Unlimited outlets in the quarter.
"V-Mart is well-placed to benefit from rural recovery and market share gains from unorganised players," Axis said, adding that the management has guided for around 75 new store additions in FY26.
Avenue Supermarts (DMart) | Buy | Target Price: Rs 4,960
The brokerage has pinned a target price of Rs 4,960 on Avenue Supermarts, citing its consistent revenue growth and strategic pivots. DMart reported approximately 15.5 per cent year-on-year revenue growth in Q2FY26, supported by increased footfalls. Axis Securities views the company's recent investment in 'D-Mart Ready' as a strategic move that will strengthen its position in the competitive online grocery market.
The report emphasises that DMart is undergoing a "clear course correction" by focusing on reviving the high-margin General Merchandise & Apparel (GM&A) segment. The brokerage note observes that “with consumer demand improving, macroeconomic conditions stabilising... these initiatives are well-aligned to support recovery," it said.
Furthermore, the management has indicated that following recent GST reforms, the company has passed on the benefits of rate reductions to customers wherever applicable, a move expected to aid volume growth.