Motilal Oswal said the Nifty is trading at a 12-month forward P/E of 21.2x, near its long-period average of 20.8x, suggesting valuations are reasonable.
After three years of store rationalisation and pricing corrections, Unlimited's newer stores are now performing in line with core V-Mart outlets.
The brokerage's analysis of its universe of stocks revealed that after a prolonged period of earnings cuts, companies are beginning to report earnings upgrades.
Brokerages have identified V-Mart Retail as a preferred pick on the back of superior same-store momentum, strengthened unit economics, and accelerating store expansion.
Despite global headwinds and subdued returns in Samvat 2081, analysts expect the coming year to offer selective opportunities across banking, consumption, infrastructure, and technology themes.
In the past one year, V-Mart Retail shares have slipped over 35 per cent, as compared to Sensex's fall of 4.7 per cent