Stock Snapshot
Price Performance
Recommendation Rationale
Strong growth outlook supported by digital initiatives and store expansion, despite manageable margin pressures.
Basis of our Recommendation
Vishal Mega Mart is experiencing strong revenue growth driven by strategic digital initiatives, store expansion, and a robust loyalty program. The company is well-positioned for future growth with its quick commerce platform and effective promotional strategies. However, it faces some margin pressures due to promotional intensity.
Why We Like This Stock
- Strong revenue growth driven by store expansion and digital initiatives
- Robust loyalty program with ~169 million registered customers contributing ~95% of revenue
- Expansion of quick commerce platform reaching 745 stores and 505 cities
Things To Watch Out For
- Slight margin pressures due to promotional intensity
- Cautious outlook on earnings
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 8,912 | 10,716 | 12,906 | 15,211 | 17,824 |
| Profit Before Tax (Cr.) | 609 | 817 | 1,125 | 1,422 | 1,710 |
| PBT Margin | 6.8% | 7.6% | 8.7% | 9.3% | 9.6% |
| Net Profit (Cr.) | 451 | 596 | 815 | 1,036 | 1,246 |
| EPS | 1.0 | 1.3 | 1.7 | 2.2 | 2.7 |
Company Overview
Show Company Profile
Vishal Mega Mart Limited engages in the wholesale, trading, and retail of apparel, fast moving consumer goods, and general merchandise in India. Its apparel product portfolio includes a range of t-shirts, shirts, denims, athletic and leisure wear, night wear, innerwear, western wear, formal wear, and ethnic wear for men, women, children, and infants; and general merchandize products comprises home appliances, crockeries and utensils, home products and furnishings, toys, stationery products, travel products and footwear, and other products. The company's fast-moving consumer goods include food products, such as biscuits, savoury snacks, noodles, and tea and coffee products; staples, such as mustard oil, soya oil, clarified butter, and spices; and non-food products comprising baby diapers, hair oil, sanitary pads, handwash, and other products. It sells its products through its stores, mobile application, and website under third party and its brand names. The company was incorporated in 2018 and is based in Gurugram, India. Vishal Mega Mart Limited is a subsidiary of Samayat Services LLP.