Whenever we purchase anything for our daily consumption, from lifestyle to electronics, etc., we contribute to the massive retail ecosystem. This sector operates in diversified businesses and is growing rapidly. One can invest in retail stock and participate in India’s growth.
In today’s blog post, we will give you an overview of the best retailing stocks in India, along with the key benefits of investing in them.
What are Retailing Stocks?
Retailing stocks are the shares of the company that are primarily engaged in selling, manufacturing and distributing goods directly to consumers through various platforms, such as online and offline stores. It covers a wide range of businesses, including supermarkets, fashion and apparel, electronics retail, etc.
Top Retailing Stocks to Buy in India
- Avenue Supermarts Limited
- Trent Limited
- Vishal Mega Mart Limited
- Brainbees Solutions Limited
- Aditya Birla Lifestyle Brands Limited
- Cartrade Tech Limited
- Medplus Health Services Limited
- Aditya Birla Fashion and Retail Limited
- V2 Retail Limited
- Ethos Limited
| Company | Current Market Price (INR) | Market Capitalisation (in INR crore) | 52-Week High | 52-Week Low |
|---|---|---|---|---|
| Avenue Supermarts Limited | 3890 | 253129 | 4950 | 3337 |
| Trent Limited | 4114 | 146240 | 6261 | 3644 |
| Vishal Mega Mart Limited | 122 | 57099 | 158 | 96 |
| Brainbees Solutions Limited | 270 | 14069 | 463 | 254 |
| Aditya Birla Lifestyle Brands Limited | 111 | 13570 | 176 | 101 |
| Cartrade Tech Limited | 2264 | 10830 | 3291 | 1362 |
| Medplus Health Services Limited | 869 | 10432 | 1052 | 603 |
| Aditya Birla Fashion and Retail Limited | 68.8 | 8399 | 106 | 59.8 |
| V2 Retail Limited | 1989 | 7253 | 2572 | 1390 |
| Ethos Limited | 2630 | 7036 | 3246 | 1897 |
Overview of Best Retailing Stocks to Buy in India
The overview of the best retailing stocks to buy in India is as follows:
1. Avenue Supermarts Limited
Avenue Supermarts Limited is an Indian-based chain of stores known as DMart that was established in 2002 by Radhakishan Damani. The company is based in Mumbai and specialises in low-price everyday retailing by utilising effective sourcing and cost management. DMart was listed on the Indian stock exchanges on 21 March 2017 and has since become one of the most successful and profitable companies in India in the retail sector.
| 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|
| 5.48% | 11.40% | 32.29% |
2. Trent Limited
Trent Limited is a company of the Tata Group and was founded in 1998 with its headquarters in Mumbai. The firm has popular retail brands, like Westside, Zudio and Star Bazaar. Trent was listed on the Indian stock exchanges on 30 November 1998 and has progressively established itself in the fashion and lifestyle retail business with the Tata Group’s brand strength and execution capability.
| 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|
| -19.29% | 225.24% | 519.92% |
3. Vishal Mega Mart Limited
Vishal Mega Mart Limited is an Indian company established in 2001 and has its headquarters in Gurugram, Haryana. The company has value retail outlets that sell clothes, food and household items, primarily focusing on the tier-2 and tier-3 cities. Vishal Mega Mart was listed on the stock market on 18 December 2024, and this has shown interest among investors in mass-market and organised formats of retail.
| 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|
| 13.09% | 17.22% | 17.22% |
4. Brainbees Solutions Limited
Brainbees Solutions Limited company was incorporated in 2010 and has its headquarters in Pune. It is commonly known by the name FirstCry, the leading baby and kids retail platform in India. It initially started with online stores and later expanded to offline stores throughout the country. On 13 August 2024, the company got itself listed on the Indian stock markets, and this was a significant milestone in its path to becoming a reliable parenting and childcare brand.
| 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|
| -34.93% | -58.56% | -58.56% |
5. Aditya Birla Lifestyle Brands Limited
Aditya Birla Lifestyle Brands Limited is a part of the Aditya Birla Group and was established as a result of corporate restructuring. It has a luxury lifestyle and fashion brands, with its headquarters in Mumbai. It serves the needs of the urban consumers. The company got itself listed on the Indian Stock Exchange in 2024, and primarily engaged in providing investors direct access to the group lifestyle and premium retail portfolio.
| 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|
| -32.53% | -32.53% | -32.53% |
6. Cartrade Tech Limited
Cartrade Tech Limited company was incorporated in 2009. It runs digital platforms like CarTrade, BikeWale, and Shriram Automall. The company links buyers, sellers, dealers, and OEMs using technology-based solutions. CarTrade Tech was listed on the Indian stock exchanges on 20 August 2021, an Indian-based, growing digital auto-retail ecosystem. Its headquarters are situated in Mumbai.
| 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|
| 25.65% | 253.54% | 21.10% |
7. MedPlus Health Services Limited
MedPlus Health Services Limited company was founded in 2006, with its head office in Hyderabad. It has one of the largest organised chains of pharmacy retail in India that sells medicines, diagnostics, and healthcare products. Being competitive in pricing and with a focus on technology operations, MedPlus was listed on the Indian stock exchanges on 23 December 2021, enhancing its stance in the healthcare retail sector.
| 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|
| 16.03% | 30.02% | -17.43% |
8. Aditya Birla Fashion and Retail Limited
Aditya Birla Fashion and Retail Limited is one of the major fashion retailing companies in India. It deals with well-known brands such as Pantaloons, Louis Philippe, Van Heusen and Allen Solly. ABFRL was listed on the Indian stock markets on 18 July 2016. The company’s headquarters is situated in Mumbai.
| 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|
| -71.46% | -70.28% | -55.78% |
9. V2 Retail Limited
V2 Retail Limited company was established in 2001 and has its headquarters in Gurugram. It deals with value fashion retailing in India. It focuses on tier-2 and tier-3, as well as on affordable clothing and lifestyle goods. It was listed on the Indian stock exchange on 9 July 2007, and has placed it as a cost-effective choice in the structured fashion retail business.
| 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|
| 17.85% | 2,232.03% | 1300.83% |
10. Ethos Limited
Ethos Limited is the biggest luxury watch retailer in India, founded in 2007 with its headquarters in Chandigarh. It sells the high-end and luxurious watch lines by using exclusive boutiques in large cities. Holding the mindset of authenticity and customer experience, Ethos went public in the Indian stock exchanges on 2 June 2022 and capitalised on the trend of increasing luxury consumption in India.
| 1-Year Return | 3-Year Return | 5-Year Return |
|---|---|---|
| 12.25% | 155.59% | 210.05% |
Key Performance Indicators (KPIs)
| Company | ROE (%) | ROCE (%) | Operating Profit Margin (%) | Net Profit Margin (%) |
|---|---|---|---|---|
| Avenue Supermarts Limited | 12.63 | 16.92 | 6.30 | 4.56 |
| Trent Limited | 28.31 | 28.09 | 12.14 | 8.45 |
| Vishal Mega Mart Limited | 9.87 | 13.03 | 9.31 | 5.89 |
| Brainbees Solutions Limited | 0.99 | 2.02 | 5.31 | 2.42 |
| Aditya Birla Lifestyle Brands Limited | 93.69 | 15.53 | 7.23 | 0.88 |
| Cartrade Tech Limited | 3.46 | 4.23 | 38.55 | 31.32 |
| Medplus Health Services Limited | 3.25 | 4.49 | 8.38 | 5.65 |
| Aditya Birla Fashion and Retail Limited | (5.51) | (2.31) | (4) | (5.95) |
| V2 Retail Limited | 20.80 | 15.85 | 8.81 | 3.82 |
| Ethos Limited | 10.02 | 12.38 | 12.06 | 7.85 |
Benefits of Investing in Retailing Stocks
The key benefits of investing in retailing stocks are as follows:
- Increasing Demand: Retail companies sell and distribute products which are required on a daily basis, which include food, clothing, electronics, etc. As they are daily-use products, these products have a consistent demand.
- Diversified Product Category: The companies engaged in the retail sector offer a wide range of products, and they are not dependent on a single product for revenue. Hence, they have a diversified source of revenue.
- Long-term Growth Potential: With the expansion of retail stores online and offline, these companies are expanding their reach. It offers them a long-term growth potential.
Factors to Consider Before Investing in Retailing Stocks
There are various factors that one should consider before investing in retailing stocks:
- Network: Before investing in any retailing stocks, one should evaluate the company’s physical store presence and online reach, along with its expansion plan.
- Financial Statements: The company’s financial performance should be checked before investing in it. This includes operating, net profit margins, key performance ratios, etc.
- Brand Image: A strong brand image helps a company attract customers and gain pricing power. And provide a better competitive advantage among other players.
Future of Retailing Stocks
The retailing industry in India has significant long-term growth potential. The growth is driven by various factors such as increasing disposable income, urbanisation, and the adoption of digital technologies, etc. In 2024-25, the industry is valued at around 82 Lakh crores, and is expected to grow at a CAGR of 13% for the coming years. And with this pace, this industry is expected to reach a valuation of 2.5 trillion dollars by 2035.
Conclusion
On a concluding note, the future of the Indian retail sectors is very promising, and investment in retailing stocks offers a blend of both growth and opportunity. The sector is projected to grow at a double-digit rate. There are various factors that act as a catalyst in this growth, such as a stable demand, increasing disposable income, etc. One can easily invest in retail stocks by opening a lifetime free demat account with Pocketful, as it also offers free brokerage on delivery trades. However, one should consult their investment advisor before making any investment decision.
Frequently Asked Questions (FAQs)
What are retailing stocks?
Retailing stocks are the shares of those companies that are engaged in selling goods and services directly to consumers, through offline stores and online platforms.
Name some retailing stocks in India?
Retailing stocks in India include Avenue Supermarts Limited, Trent Limited, Vishal Mega Mart Limited, V2 Retail Limited, etc.
What are the key risks involved while investing in retail stocks?
The key risks involved while investing in retailing stocks are profit margins, economic slowdown, supply chain disruption, etc.
How to select the best retailing stocks?
To select the best retailing stock, one must consider the financial performance of the company, its key ratios, management quality, etc.
How to invest in retailing stocks?
To invest in retailing stocks, one should have a demat and trading account. Pocketful also offers you an opportunity to open a lifetime free demat and trading account. Along with this, it also offers zero brokerage on delivery trades, and its mobile application comes with advanced trading tools.
