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

Motilal Oswal is bullish on Vishal Mega Mart recommended buy rating on the stock with a target price of Rs 170 in its research report dated December 16, 2025.

Broker Research

December 17, 2025 / 15:05 IST

Buy

Motilal Oswal's research report on Vishal Mega Mart

We interacted with senior management of Vishal Mega Mart (VMM) to understand the company’s growth runway, scope of operating leverage and profitability in South India, among other things. Here are the key takeaways: Management remains optimistic about sustaining double-digit SSSG on an annual basis (quarterly deviations might happen due to a change in the festive season, etc.) for a fairly long period, driven by differentiated own brands portfolio (~75% of the revenue mix). VMM has focused on premiumization over the last few years to match the rising aspirations of its customer base while remaining competitive in the opening price points by investing the gains from better buying efficiencies to improve the product quality. The company’s focus on volume-led growth, technology (warehouse automation, RFID implementation), best-in-class supply chain management (<3% of revenue) and frugal operational philosophy should result in operating leverage and drive EBITDA margin expansion.

Outlook

We remain positive on VMM for its consistent growth trajectory, along with potential for margin expansion. We reiterate our BUY rating with a revised TP of INR170, premised on ~40x DCF implied Dec’27E pre-INDAS 116 EV/EBITDA (implies ~61x Dec’27 P/E).

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