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Vishal Mega Mart share price rose nearly 2% in early trade on Thursday, 24 September, before reversing gains and ending 1.13% lower at ₹105.20 on the BSE. The stock remained in focus after recent analyst interactions, with brokerages highlighting the retailer’s store expansion, private-label strategy, quick-commerce opportunity and scope for margin improvement. Emkay Global Financial Services retained its ‘Buy’ rating on Vishal Mega Mart with a target price of ₹170, implying significant potential upside from current levels. The brokerage expects the company to deliver around 18% revenue CAGR and 27% PAT CAGR between FY26 and FY29. According to Emkay, Vishal Mega Mart remains confident of delivering double-digit same-store sales growth (SSG) annually, supported by its differentiated private-label portfolio and growing quick-commerce business. However, the brokerage expects quarterly SSG to remain volatile due to festive and seasonal shifts. Emkay sees considerable room for store expansion. The existing large-store format could support around 1,200 stores, with more than 100 new stores added annually. Meanwhile, the smaller-store format being tested in towns with populations of around 40,000 could significantly expand the addressable opportunity to nearly 4,000 stores. The company has also launched Belong & Co., a relatively premium, apparel-only format in Delhi targeting younger, more affluent consumers. Emkay noted that Vishal Mega Mart continues to reinvest its sourcing benefits into product quality, fashion, functionality and customer experience. The retailer is also expanding warehousing capacity and gradually introducing RFID technology to improve inventory management and reduce shrinkage. Jefferies analysts Vivek Maheshwari, Kedar Gattani and Rushabh Bhachawat also retained their ‘Buy’ rating on Vishal Mega Mart, with a target price of ₹160. Based on a market price of around ₹104, the target implies an upside of approximately 54%. Jefferies said Vishal Mega Mart’s value-for-money proposition is evolving alongside rising consumer aspirations, while strong volumes and sourcing advantages support management’s confidence in maintaining margins despite investments in technology, supply chain and automation. The brokerage sees the company’s current 833-store network as only the beginning, with management targeting around 2,000 stores over time. Smaller formats could eventually expand the opportunity to around 4,000 stores. Private labels remain central to the company’s business model, accounting for more than 60% of FMCG volumes and around 74% of general merchandise sales. Jefferies noted that private-label FMCG margins are around twice those of national brands, while general merchandise margins are 3–3.5 percentage points higher. Quick commerce remains relatively small, contributing less than 4% overall, though it ranges from 2% to 10% at individual stores. The business is already cash breakeven, according to management. Jefferies believes the combination of store expansion, new formats, private-label economics, quick commerce and operating leverage provides multiple avenues for Vishal Mega Mart to scale beyond its current footprint. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions. Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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