Personal shopping is the lifeline of any economy, especially in a heavily populated country like India. Be it shopping for personal effects like clothes and jewelry or your periodic grocery needs.
It is the retail companies in India that service this requirement. The retail sector includes companies that directly sell goods to the final customers. Offline stores have traditionally dominated the retail sector.
Post the pandemic, many of these companies have had to transition to an online form to keep their business going.
Retail companies tend to be high volume, highly profitable businesses. The Indian stock market lists several of these retail companies.
To help the common investor access these profitable companies, we bring you a comprehensive list of the best retail stocks to buy.
Know about the Retail Sector in India
The Indian retail sector is a huge market. It is a continuously innovating sector as new entrants frequently make their place, either with new products or new offerings.
The retail sector alone contributes 10% to the GDP of the country.
It also accounts for 8% of the employment generation in India. It is the 5th largest retail market in the whole world. The market size will touch USD 1.8 Trn by 2030 from USD 779 Bn.
The retail sector is home to many top retail companies in India – these include big and small-size companies and companies that operate in offline and online modes.
The retail sector includes FMCG, apparel, footwear, and consumer electronics segments. Globally, India ranks 2nd in the Global Retail Development Index.
In this article, we bring a list of the top retail sector stocks to buy.
Top 10 Retail Stocks to Buy in India – List of Best Retail Shares to Buy
We have determined the best retail shares in India based on their market capitalization. The stocks with the highest market cap have been ranked first and so on.
Further, we have listed five more retail companies in our ‘honorable mentions’ category: The list of supermarket shares to buy includes many known consumer brands.
These brands are very popular amongst the wide customer base in a heavily populated country like India. Thus, considering their size as the base for ranking is appropriate.
Market capitalization is a very good indicator of the size and value of a stock. Market cap is calculated by multiplying the stock’s latest trading price by the company’s total number of outstanding shares.
Furthermore, we have also listed down other important parameters while considering which stocks to buy. We will now elaborate on the important aspects of each of these selected stocks.
Avenue Supermarts Ltd. – Best Supermarket Stocks in India
Avenue Supermarts Ltd ranks first in the list of best supermarket stocks in India. It is a retail company that operates several chains of hypermarket stores.
The Company operates under the famous brand – ‘D-mart.’ 2002 is the year of its establishment. It began its operations with a single store in Mumbai.
Today the Company has 234 retail stores in the whole country. Its retail reach is 8.8 Mn square feet, and it has stores in almost every state and union territory in India.
The product categories it sells include primarily foods, non-foods, general merchandise, and apparel. The Company’s annual revenue is over Rs.24,930 crores.
Avenue Supermarts is a large-cap company with a market cap of Rs.2,70,309 crores. It has a high market price of its shares, around Rs.4193.
Why to invest in Avenue Supermarts Ltd. stocks?
- India has a fast-rising middle-class population – this is the target customer base for Avenue Supermarts.
- The company has transitioned to a very successful online model during the pandemic. This will increase the revenue and profits of the Company.
- The Company is highly profitable, with an AAA rating from all accredited rating agencies globally.
Trent – Best Retail Stocks in India
Achieving the second rank amongst the best retail stocks in India is Trent Ltd. Trent is part of the famous Tata Group. It operates three major retail chains – Westside, Landmark, and Star Bazaar.
Westside is a leading apparels store in the country. Landmark is a leading bookstore chain.1998 is the founding year of the Company.
Westside has 174 stores across India. Their brands include NUON, Studio West, Wunderlove, ETA, Bombay Paisley, LOV, Utsa, etc.
Star Bazaar has more than 50 stores across India. Across all its brands, the Company has more than 400 outlets. The annual revenue of the Company is Rs2174 crores.
Trent has a market capitalization of Rs.37,658 crores. Its share price trades around Rs.1054.
Why to invest in Trent stocks?
- India has favorable demographics – the growing per capita income is a boon for this Company.
- India has the second-largest internet consumer base – Trent has transitioned its brands into an online model to take advantage of this.
- Its USP is to provide the best products and latest fashions at affordable prices.
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Aditya Birla Fashion – Top Retail Sector Stocks
Next on the top retail sector stocks list is Aditya Birla Fashion Ltd. The Company is home to several leading fashion brands. Its stores are spread across 8.4 million sq. feet across 3212 stores in 850 cities.
It has also connected 1000 of its stores to a robust e-commerce platform.
The Company’s brands include Louis Phillipe, Van Heusen, Allen Solly, Peter England, Forever 21, and many more. Its annual revenue is around Rs.6000 crore.
Aditya Birla Fashion has a market cap of Rs.25,327 crores. Its retail store share price is approximately Rs.269.
Why to invest in Aditya Birla Fashion Ltd. stocks?
- It has one of the best EBITDA margins in the sector at 12.9% and is good for investment.
- It is on a major cost reduction program, having reduced Rs.1200 crores in excess cost in the last year itself
- As life returns to normal post-pandemic, the demand for Fashion and apparel is seeing a tremendous recovery
- It has a wide reach in the fashion space – India’s first billion-dollar multi-brand fashion company
Bata India – Top Retail Companies in India
Bata India is a known brand that features amongst the top retail companies in India. The Bata India is a leading shoe manufacturer and shoe retailer in India.
It has four manufacturing units. Through these, it supplies shoes to 1526 retail stores. Its stores are spread across 2.98 Mn sq. feet of retail space.
It sells more than 31 Mn pairs of footwear each year with gross annual revenue of Rs.1707 crores. Bata brands include Bata comfit, Hush Puppies, Bubble Gummers, North Star, Power, and Marie Claire.
Bata India has a market capitalization of Rs.24,083 crores. Its retail share price trades around Rs.1867.
Why to invest in Bata India stocks?
- It has a monopolistic position in the affordable shoe segment in India
- It is a profitable company with zero debt
- Also, it has an immense brand value in the country, being amongst the oldest and most well-known brands in the country
- Bata India Share Forecast suggests that it has very good future potential.
Metro Brands – Top Retail Outlet Stocks
Taking the fifth position in India’s top retail outlet stocks is Metro Brands Ltd. This Company is a leading retailer of footwear, bags, and accessories in India.
It caters to budget and luxury demands. It is an established company that began more than seven decades ago with a single outlet in Colaba.
The name of the promoter is Abdul Malik Tejani. Today the Company has 486 showrooms across the country.
The Company’s brand names include Metro, Mochi, Walkway, and Crocs. It has an annual revenue of almost Rs.1000 crores with a net profit of Rs.75 crores.
Metro Brands has a market cap of Rs.14,793 crores. Its retail outlet share price is around Rs.543.
Why to invest in Metro Brands Ltd stocks?
- It has a high dividend payout ratio of 55%, making it good for investors.
- The Company has consistently maintained an EBITDA margin of nearly 20% over the last decade.
- The Company has a consolidation process underway. It has recently invested in a 1.5 lac sq. ft single warehouse. This will centralize their dispatches and achieve economies of scale. They have also taken various other cost-cutting measures to increase their profitability.
- The Company has a strong brand presence in the country.
IndiaMart Intermesh – Top 10 Retail Stocks
IndiaMart Intermesh Ltd is next on the list of top 10 retail stocks. The Company is a huge retail aggregator – it connects buyers and suppliers across 56 industries and more than 97,000 product categories.
It lists more than 72 million products. It connects more than 125 Mn buyers to more than 6.5 Mn suppliers.IndiaMart is primarily a digital-driven business. Its platform can be accessed through a desktop and a mobile app.
The Company’s annual revenue is more than 756 Mn. It has a high net profit of 312 crores.IndiaMart Intermesh has a market cap of Rs.14,781 crores. Its retail companies’ share price is high and trades at around Rs.4822.
Why to invest in IndiaMart Intermesh Ltd stocks?
- The Company’s unique business model makes it highly profitable, with a 40%+ profit margin
- The business has a 57% returning extremely good customer rate
- India Mart is a favorite amongst buyers and sellers – having a high rating of 4.7 on the play store
- The Company’s digital model is best suited for the prevalent digital shopping trend
- Traders can all trade in this stock for the short term as it also provides short term benefits.
V Mart Retail – Best Supermarket Stocks
The next list of best supermarket stocks to buy is V Mart Retail Ltd. V Mart Retail operates a chain of retail stores engaged in fashion apparel, footwear, home furnishings, and general merchandise.
2002 is the year of the establishment of the Company. The operations of the Company are spread across 189 cities with 279 stores. It is spread over 22.99 lac sq. ft. Its average store size is 8000 sq. ft.
The Company has an annual revenue of more than Rs.1000 crores with a profit of more than Rs. 200 crores. V Mart Retail has a market cap of Rs.6824 crores. Its supermarket shares in India are approximately 3397.
Why to invest in V Mart Retail stocks?
- It has a first-mover advantage in Tier 2 and Tier 3 cities
- It operates on a one-stop-shop concept catering to all consumer needs under one roof
- Also, it has recently launched its e-commerce portal, which has seen great success since its launch
- Its popularity is increasing. It has seen a 48% footfall increase in the last year alone.
- According to V Mart Retail Stock Prediction, it is expected to provide decent returns.
Vaibhav Global – Top Retail Stocks to Buy
The next list of top retail stocks to buy is Vaibhav Global Ltd. It is a manufacturer and electronic retailer of jewelry and other lifestyle accessories.
Though its headquarters are in India, its main business comes from overseas sales. It sells its products through home shopping channels – main markets in the US and UK.
1989 is the founding year of the Company. The Company has achieved 65th rank in Fortune India’s next 500. It has more than Rs.2500 crores and a net profit of more than Rs.272 crores.
Vaibhav Global Ltd has a market cap of Rs. 6,707 crores. Its share price is around Rs.407.
Why to invest in Vaibhav Global Ltd. stocks?
- Its focus is on international markets that have high purchasing power. This is evident from its high average purchase order of 27 pieces per customer.
- It is a fast-growing company – customers have increased 38% Y-o-Y.
- The company has a strong balance sheet which attracts all types of Investors.
Go Fashion (India) – Best Retail Companies in India
Taking the ninth position in the list of best retail companies in India is Go Fashion India Ltd. It is a leading apparel company.
The Company sells its products under its brand – Go Colours. Its specialty is a wide variety of bottom wear. Its product line includes everything from pants and jeggings to churidars and jeans.
The Company’s annual revenue is nearly Rs. 300 crores. Go Fashion has a market cap of Rs.4990 crores. Its share price is reasonably priced, trading at around Rs.923.
Why to invest in Go Fashion India Ltd. stocks?
- It is a specialized company with a defined focus. This makes it a go-to company for all bottom wear apparel needs of Indian consumers.
- It has recently been listed through an IPO, and its share price has already seen 50% growth in just six months since listing.
Shoppers Stop – Fashion Store Shares to Buy
Rounding off the list of fashion store shares to buy is Shoppers Stop Ltd. Shoppers Stop is a multi-brand retailer. Its product lines range from apparel, footwear, home furnishing, and accessories.
The Company has 84 departmental stores, 127 beauty stores, 29 crossword stores, and 11 home top stores. It hosts more than 800 consumer brands.
The Company’s retail floor space is more than 4.5 million sq. feet. Its website is also very popular, with more than 70 million visits. Its annual revenue is Rs. 2142 crores.
The Company has a market cap of Rs.3695 crores. Its share price trades around Rs.336.
Why to invest in Shoppers Stop Ltd. stocks?
- It has a unique first citizen program – with more than 8mn members.
- The Company has a unique personal shopping facility with a high average ticket size of Rs.9000. This contributes 16% to its overall revenue
- The Company is practically debt-free
- According to Shoppers Stop Stock Prediction, it is expected to provide decent returns.
Arvind Fashions – Retail Sector Stocks to Buy
The first Company to make it to the honorable mentions list of retail sector stocks to buy is Arvind Fashions Ltd. It is a leading casual lifestyle company.
The Company’s brand portfolio includes US Polo, Tommy Hilfiger, Calvin Klein, Arrow, Flying Machine, etc. The Company has nearly 1500 stores across brands.
It has a market cap of Rs. 3650 crores. Its share price trades around Rs.276.
Future Retail – Supermarket Companies’ Stocks to Buy
Future Retail Ltd features next in our honorable mentions category of supermarket Companies’ stocks to buy. They runs the Big Bazaar departmental stores across the country.
Future Retail has a market cap of Rs.2567 crores, with its share price around Rs. 47. The Reliance Group has recently taken over future Retail. This indicates high success in the future for the Company.
Shankara Building Products – Retail Store Companies’ Shares to Buy
Next on the list of honorable mentions of retail store companies’ shares to buy is Shankara Building Products Ltd. It is a leading retailer of home improvement and building products.
Its products include steel pipes and tubes, kitchen sinks, plywood, welding accessories, etc. It has an annual revenue of nearly Rs.2000 crores.
The Company has a market cap of Rs.1578 crores. Its share price is trading around Rs.691.
Kewal Kiran Clothing – Top Retail Companies in India
Kewal Kiran Clothing Ltd is also amongst the top retail companies in India.
It is a multi-brand retail apparel company. 1980 is the year of the establishment of the Company. Its brand portfolio includes Lawman, Killer, Integriti, K-Lounge, etc.
The Company has a market cap of Rs.1209 crores. Its share price is reasonable, around Rs.196.
Future Lifestyle – Fashion Stocks in India
Future Lifestyle Fashions Ltd is the last on our list of fashion stocks in India. The Company retails to several popular lifestyle brands.
Its brands include Lee Cooper, Indigo Nation, Bare, Scullers, Jealous 21, John Miller, etc. Its market capitalization is Rs.1020 crores, and its share price trades around Rs.53.
How to find Retail stocks for trading?
Now that you have detailed information on the top 15 retail stocks, you can begin to trade in retail stocks. However, you may wish to narrow down this list and select 2-3 stocks to include in your portfolio.
For this purpose, we have shortlisted certain factors that you can consider:
- The Company’s financial condition- Only a profitable and well-managed company can be good for investors. Thus, you can analyze the financial reports and audit reports to gauge the financial stability of the stocks.
- P/E ratio – A P/E ratio is a good indicator of how well is a stock priced
- Innovation level of the Company – Consumer needs are constantly changing. Companies that can keep pace with the changing consumer demand will be the correct stocks to pick
How to invest in Retail sector stocks?
You must have a Demat account to invest in retail stocks. Apart from this, an active trading account is also a must. This is necessary as all stocks are today only traded in electronic format.
A Demat account can be opened with a good financial services firm or any discount brokerage house. KYC documentation is a must for this purpose.
Once, you can access your Demat account by keying in the provided username and password.
Once logged in, you can track the performance of stocks, view research reports and charts, buy and sell stocks and keep track of your portfolio performance.
Top Retail Companies in India – Conclusion
India is set out to become the world’s 3rd largest consumer economy. They are reaching 27.95 lac crores by 2025. This is primarily because of India’s demographic advantages.
Its high population, rising income levels, and increasing aspiration levels. This background is favorable for the top retail companies in India to perform well. Global retailers, too, are flocking to India for their sourcing requirements.
India has become a favorable market for fashion retailers on the back of a large young adult consumer base, increasing disposable income, and relaxed FDI norms.
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