India's V2 Retail rises as Motilal Oswal starts with 'buy', sees tier-2,3 growth runway

V2 Retail

07/09/2026 06:00

** Shares of V2 Retail VREL.NS rise as much as 3.35% to a five-week high of 223.75 rupees
** Shares of the retail chain company in textiles and apparel rise after Motilal Oswal initiates coverage with "buy" at a price target of 275 rupees, an implied upside of 27%
** VREL offers a strong growth opportunity, driven by merchandise discipline, robust store economics and deep penetration in underpenetrated tier-2 and tier-3 markets, Motilal Oswal says
** Projects VREL to deliver profit-after-tax CAGR of 35% over FY2026-2029, driven by 450 store additions
** Consumers are migrating from unorganised toward organised apparel, a shift more pronounced in tier-2 and 3 cities, where branded alternatives remain scarce, says Motilal Oswal
** Adds competitive overlap for VREL remains limited, with 54% of the 760 cities hosting only one retailer
** VREL shares are down 10% in 2026 so far, according to exchange data   

 

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))