Best Retail Stocks in India: What Makes the Retail Sector in India So Attractive?
Best Retail Stocks in India: An Overview
The retail sector in India is the 4th largest retail market in the world. The retail sector involves selling goods and services to customers. The sector is growing rapidly as consumer spending has grown tremendously over the past few years because of the vast population, rising household incomes, connected rural consumers, and rising urbanization. You can invest in this sector by buying retail stocks listed on the stock exchanges. The retail sector plays a significant role in the growing economy as they help in generating employment. In this article, we are going to learn about retail stocks India, retail market share in India, and the best retail stocks in India.
Retail Sector Companies in India
Retail sector companies are growing tremendously and this is the reason many investors get attracted to buy their stocks. Retail market share in India has reached around $690 Bn and is likely to grow $2 tn by 2032. The best part of investing in retail stocks is that you can go to their shop and buy their products, isn't it fascinating seeing people lining up at the retail store where you have invested. Retail stocks India are less volatile than other sector stocks which means they help you earn steady returns over time. However, you need to keep in mind that retail sector companies are sensitive to macroeconomic factors. So, do proper research and analysis about the retail stock you are willing to invest in.
Key Takeaways:
- Retail sector stocks have grown significantly over the last few years due to the rise in online shopping.
- Retail stocks tend to be less volatile than any other stocks.
- Investing in top-listed retail companies in India will enable you to earn steady returns over time.
Best Retail Stocks in India 2022
| Company Name | Market Cap (Rs. Cr.) | P/E | ROCE (%) | Div YLD (%) |
| Avenue Supermarts | 284696.99
| 139.61
| 15.75
| 0.00
|
| Vedanta Fashions | 34549.97
| 94.75 | 32.79 | 0.34 |
| Trent | 50345.87
| 168.77
| 9.29 | 0.12 |
| Aditya Birla Fashion & Retail | 31209.38 | 97.31 | 3.36 | 0.00 |
| Shoppers Stop | 8434.80
| 144.26 | 3.75 | 0.00 |
| Metro Brands | 24445.48 | 74.63 | 19.88 | 0.25 |
| Medplus Health | 7059.35 | 136.94 | 11.36 | 0.00 |
| Arvind Fashions | 4059.31 | NA | -6.12 | 0.00 |
| V-Mart Retail | 5515.58 | 90.69 | 5.21 | 0.03 |
| Future Lifestyle | 146.27 | NA | -84.48 | 0.00 |
| Ethos | 2261.95 | 96.82 | 15.25 | 0.00 |
| Future Enterprises | 109.45 | NA | -11.69 | 0.00 |
| Spencer’s Retail | 665.64 | NA | -2.30 | 0.00 |
| Goblin India | 75.87 | NA | -0.02 | 0.00 |
| Rajnish Wellness | 543.71 | 1394.07 | 3.38 | 0.00 |
| Archies | 72.46 | NA | 2.52 | 0.00 |
| V2 Retail | 382.40 | NA | 3.33 | 0.00 |
| Heads UP Ventures | 33.13 | NA | -15.99 | 0.00 |
| Future Retail | 195.22 | NA | -13.74 | 0.00 |
(Data as of 12th October 2022)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
Most Popular Retail Stocks in India
Avenue Supermarts Ltd: This company ranks first in the list of best supermarket stocks in India. It was founded in the year 2000 and the parent company is Avenue Supermarts Limited. As of 12 October 2022, the market capitalization of the stock is INR 2,83,797 Cr and the last traded price is Rs. 4,352.90.
Trent: It is the second largest retail stock after Avenue supermarts Ltd in India. The company was founded in the year 1952 and the parent company is Trent limited. As of 12 October 2022, the market capitalization of the stock is INR 50,588 Cr and the last traded price is Rs. 1,422.30.
Aditya Birla Fashion & Retail: The company was founded in the year 2007 and its retail stores are located in 850 cities. As of 12 October 2022, the market capitalization of the stock is INR 31,336 Cr and the last traded price is Rs. 332.20.
Things to consider while investing in retail stocks
- Follow the right risk management strategy while investing in any financial instruments to minimize losses. You need to keep in mind that the stock market is volatile and so do the retail stocks. So, do adequate research before deciding to buy retail stocks or any stocks.
- The stock market is highly influenced by geopolitical conflicts and macroeconomic factors. If you are an active trader in the stock market you must keep an eye on macroeconomic factors such as budget, GDP growth, monetary policy, inflation rate, geopolitical tensions, and exchange rate.
- Analyze the financials of the retail stocks and key indicators to research the stock well. You can use financial indicators such as debt-to-equity ratio, Price to earning ratio (P/E), Earnings per share (EPS), Return on capital employed (ROCE), and market capitalization to analyze the fundamentals of the stock.
To conclude, investing in retail stocks India will help you to earn potential rewards in the long run but you need to keep in mind that the stock market is associated with high risk. So, analyze your risk appetite and investment objectives before investing in any stock.
This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.
Which are the best retail sector companies stocks in India to invest in 2022?
The best retail stocks in India are Avenue Supermarts, Trent, Aditya Birla Fashion, Bata India, and Vaibhav Gopal.
What is a retail stock?
Retail stock is a company's stock that involves selling goods and services to consumers online or store.
How can I invest in retail stocks?
Open a Demat account to start investing. Make sure that you are 18 years or above and have the required documents to open your account.
Which is the best retail stock in India?
There are several retail companies that have gained prominence over the last couple of years. We have listed some of the best retail stocks in the list above. Check them!