High confidence on Kerala TAM opening up in a material way was one of the major takeaways from our meeting with GK. Read on: (1) Strong traction in Kerala with a ~100-store opportunity; entry in Tamil Nadu will be in a phased manner to protect store economics. (2) Mix is premiumising, with premium apparel growing the fastest in a demand environment that is currently fully volume-led. (3) QC contributes ~3-4% of store revenue on average (range: 2-9%) with ~20% new customers. (4) Private labels remain a key margin lever with healthy penetration across core categories, though adoption varies by segment. (5) A clear value gap vs. local cooperatives and a differentiated role vs. DMart supports competitive positioning. (6) Execution remains strong with shrink (inventory loss) at ~0.59% and ROCE at ~70%, supporting a fully company-operated model. BUY.
OutlookWe largely maintain our earnings estimate; modelling revenue/ EBITDA/PAT CAGR of 19%/21%/26% over FY25-28E. Maintain BUY with a DCF-based target price of INR 175.
For all recommendations report, click hereDisclaimer: 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 - 12122025 - iciciDiscover 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.
