Buy Vishal Mega Mart; target of Rs 170: Motilal Oswal

Buy

Motilal Oswal's research report on Vishal Mega Mart

Vishal Mega Mart (VMM) delivered a resilient performance amid a partial shift in festive (to 2Q) with ~17% YoY revenue growth, led by 29 net store additions (+15% YoY) and ~7.5% adj. SSSG (vs. 12.8% in 2Q, ~210bp adverse impact due to festive shift to 2Q). VMM’s EBITDA and pre-Ind AS EBITDA margins expanded ~40bp and ~20bp YoY, respectively, led by operating leverage and robust cost controls.

Outlook

We reiterate our BUY rating on the stock with an unchanged TP of INR170. Our TP is premised on DCF-implied ~40x FY28E pre-IND AS 116 EV/EBITDA (implying ~28x FY28E reported EBITDA and ~60x FY28E EPS).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Vishal Mega Mart_29012026_Motilal Oswal