Buy Vishal Mega Mart; target of Rs 140: ICICI Securities

ICICI Securities is bullish on Vishal Mega Mart recommended buy rating on the stock with a target price of Rs 140 in its research report dated April 07, 2025.

Broker Research

April 08, 2025 / 12:58 IST

Buy

26 Aug, 2025 12:21

Volume

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ICICI Securities research report on Vishal Mega Mart

Vishal Mega Mart’s (VMM) private label strategy in FMCG (~27% of revenue) has been important for its success story, redefining value for consumers. Our primary research outcomes: 1) High presence of large-pack SKUs and 2) reputed manufacturers for its private label brands. Both these features imply its focus on consumers seeking true value in FMCG by purchasing large packs private label brands without compromising on quality. Importantly, this allows VMM to acquire new consumers for its other more profitable categories (apparel and general merchandise). With its valuepricing strategy, led by focus on private labels (~73% salience), lean cost structures, efficient supply chain and loyal customer base, VMM is well placed for sustained profitable growth. BUY.

Outlook

Our earnings estimates are unchanged, modelling in revenue/ EBITDA/PAT CAGR of 19%/20%/29% over FY24-27E. Maintain BUY with DCF-based unchanged target price of INR 140. Key risks: Slower than expected store addition and SSSG, exit of key managerial personnel and customer shifting towards convenience (quick commerce as ot pivots and scales on value).

For all recommendations report, click here