Motilal Oswal's research report on Vishal Mega Mart
Vishal Mega Mart (VMM) delivered another strong quarter, with ~22% YoY revenue growth, led by 25 net store additions (+15% YoY) and robust ~12.8% adjusted SSSG, benefiting from an early festive season. Gross/EBITDA/pre-IndAS EBITDA margins expanded 5bp/80bp/100bp YoY, driven by operating leverage and robust cost controls. Management estimated the SSSG boost of ~150-200bp from the shift in the festive season. However, it remains optimistic about improvement in consumer sentiment, following the recent policy measures. The company reiterated its focus on maintain gross margins and investing the surplus to improve product proposition and drive growth, while operating leverage should aid EBITDA margin expansion.
Outlook
We reiterate our BUY rating with a revised TP of INR180, premised on DCF implied ~43x Dec’27E pre-IND AS 116 EV/EBITDA (implying ~31x Dec’27E reported EBITDA and ~65x Dec’27E P/E).
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
