I-Sec maintains Buy call on Vishal Mega Mart, target price Rs 140
has a
Buy call
on
Vishal Mega Mart
with a target price of Rs 140. The current market price of Vishal Mega Mart is Rs 118.85.
Financials
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Villas Prices In Dubai Might Be More Affordable Than You Think
Villas In Dubai | Search Ads
Get Quote
Undo
Vishal Mega Mart delivered a strong Q4FY25 performance despite a challenging demand environment, with revenue/ EBITDA/ PAT growth of 23%/ 43%/ 88% exceeding our expectations. The performance was driven by double-digit SSSG (13.4% YoY) and an addition of 28 stores QoQ (85 stores in FY25). For FY25, revenue/ EBITDA/ PAT grew 20%/ 23%/ 37% with SSSG of 11.8%. Adj. EBITDA margin (pre-INDAS and ESOP) expanded 240bps YoY to 8.2% and reported EBITDA margin was at 14% (up 190 bps YoY; ~70bps impact due to ESOPs). ICICI Securities expects Vishal mega Mart to maintain its strong momentum, supported by aggressive store expansion and a focus on value-driven pricing.
Play Video
Pause
Skip Backward
Skip Forward
Unmute
Current Time
0:00
/
Duration
0:00
Loaded
:
0%
0:00
Stream Type
LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
1x
Playback Rate
Chapters
Chapters
Descriptions
descriptions off
, selected
Captions
captions settings
, opens captions settings dialog
captions off
, selected
Audio Track
default
, selected
Picture-in-Picture
Fullscreen
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text
Color
White
Black
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Text Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Opaque
Semi-Transparent
Transparent
Caption Area Background
Color
Black
White
Red
Green
Blue
Yellow
Magenta
Cyan
Opacity
Transparent
Semi-Transparent
Opaque
Font Size
50%
75%
100%
125%
150%
175%
200%
300%
400%
Text Edge Style
None
Raised
Depressed
Uniform
Drop shadow
Font Family
Proportional Sans-Serif
Monospace Sans-Serif
Proportional Serif
Monospace Serif
Casual
Script
Small Caps
Reset
restore all settings to the default values
Done
Close Modal Dialog
End of dialog window.
Investment Rationale
The key drivers are Vishal Mega Mart's high share of private label products (~73% of sales), lean cost structure, efficient supply chain, and a highly loyal customer base (contributing ~95% of revenue). ICICI Securities retains its positive outlook and maintains a BUY rating, as the company remains well positioned for sustained and profitable growth.
Live Events
The brokerage maintains its earnings estimates for FY26E/FY27E, modelling revenue/ EBITDA/PAT CAGR of 18%/19%/26% over FY25-27E. They maintain a BUY with a DCF-based unchanged target price of Rs 140. The key risks are slower-than-expected store addition and SSSG, exit of key managerial personnel and customer shifting towards convenience (quick commerce).
Promoter/FII Holdings
Promoters held 74.55 per cent stake in the company as of 31-Mar-2025, while FIIs owned 7.03 per cent, DIIs 12.18 per cent.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
33 minutes ago
- Time of India
Reduced annuity returns after rate cuts: LIC chief
MUMBAI: R Doraiswamy, who took over as MD & CEO of LIC less than a month ago, wants the corporation to retain its position as the largest insurer. He speaks to TOI about LIC's strategies. With both markets and interest rates down, how will you increase returns? Have you repriced any products because of the fall in rates? We are a long-term investor. We look at all market cycles and invest whenever there's an opportunity for value creation. If equities aren't attractive, we invest in other instruments like money market products and wait for the right moment. Short- or medium-term market movements don't affect us because we focus on the long term. We look for value opportunities in equity IPOs as well. Until then, we park funds in short-term investments and shift when we see value. We recently repriced our annuities - both Jeevan Akshay and Jeevan Shanti - towards the end of last month in line with market conditions. LIC's stock is below the IPO price. How will you attract investors if govt wants to dilute? What's your dividend policy? We believe LIC deserves a better valuation. Govt is closely watching the market and will take a call on a price when there is enough scope in the market to go for further dilution. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Secret Lives of the Romanovs — the Last Rulers of Imperial Russia! Learn More Undo They aim to reduce their holding to 90% by 2027 and are working towards that. Dividend distribution will depend on capital and solvency needs. We currently have a solvency ratio above 2, while the requirement as a systemically important insurer is 1.75. The solvency ratio will drop by a few basis points once the regulator implements risk-based capital requirements and IFRS (accounting norms). We've engaged Deloitte as consultants and are preparing for compliance. Is LIC moving towards more profitable products? Why was there a drop in the number of policies? We've shifted towards non-par products to match market demand, especially from younger customers seeking guaranteed and short-term plans. Our non-par share in premiums has risen from 7% in 2022 to 30%. We will now balance focus between par and non-par products. The decline in policies was because a new master circular in Oct 2024 required us to modify all products, increase the minimum sum assured, and change commission structures. This reduced policy numbers, especially in popular low-ticket plans. We saw a significant degrowth in the number of policies sold during Q3FY25, which continued in Q4 as well as Q1FY26. We're working to recover growth in the second half. There was news about LIC picking up a stake in a health insurer. When will the deal conclude? Will you look at composite (life and non-life) insurance? We never named any company. We were exploring taking a strategic stake in a standalone health insurer for learning purposes. But as we progressed, we found that we needed to do much more due diligence and expand the options available, examining them in greater depth. So we decided not to make a quick move. We will also wait for changes in insurance laws and other regulatory changes expected in the near future. We have been a pure life insurer since 1972. We'll examine the composite option if laws change, but we have no such plan now. What's the aspiration in banking after the IDBI stake sale proposal? Our vision is to be a transnationally competitive financial conglomerate. We acquired up to 51% of IDBI Bank because their recapitalisation need provided us an opportunity. We are now at 49.2%. Govt and LIC will jointly offload part of our stake during privatisation, but we will retain a significant holding post-sale and continue the relationship. Do you plan to grow your market share? The focus of govt is to allow 100% foreign direct investment so that there are new players. When the market has more players, market share may reduce. We are not looking at market share as a prime focus. We are focusing on continuing to grow sustainably and profitably while expanding the market. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Time of India
33 minutes ago
- Time of India
Gadkari: Farmers will have to become fuel producers to reduce biofuel import
Pune: Stressing on the need to increase the biofuel production to make India self-sufficient, Union minister of road transport and highways Nitin Gadkari on Monday said the country's farmers would have to produce it. He said, "Indian farmers will have to be encouraged to become fuel producers, along with food producers, to reduce the burden of biofuel import," he said, addressing the 10th anniversary of the World Biofuel Day event organised by Praj Industries in the city on Monday. Founder chairman of Praj Industries Pramod Chaudhary and managing director of Kirloskar Brothers Sanjay Kirloskar were present at the event. Lauding the efforts of the automobile industry in the country's development, Gadkari said surpassing Japan, India had become the third biggest automobile producer in the world and it gave maximum revenue to the country. But the minister reminded the audience that the industry was also contributing to air pollution. You Can Also Check: Pune AQI | Weather in Pune | Bank Holidays in Pune | Public Holidays in Pune "Nearly 40% of the air pollution is because of motor transport. We are still not being serious about its ill-effects. Along with economic development, we also need to balance our ecology, and for that, biofuel will play the most important role in the coming years," Gadkari said. The minister said India was still heavily dependent on the import of biofuel. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 20 Unforgettable Cars from the Past Undo "India has to import biofuel worth Rs22 lakh crore per annum. If we encourage the production of biofuel in the country, it will not only address the ecological issue but also reduce the economic burden on the country," he said. Gadkari stressed on the need to increase the agriculture sector's share in the Indian economy to improve the rural economy. He said, "While the country's economy is growing, the situation of the rural sector is deteriorating. Nearly 60 to 65% of the population is still dependent on agriculture, but its share in the Indian economy is merely 12 to 14%. If we want to achieve the goal of becoming the third largest economy, the agriculture sector will have to contribute 22 to 24%. The govt has adopted a policy of diversification of the agriculture sector to promote power and energy generation." He said, "Today we have ample production of agricultural produce, but farmers are not getting the desired remuneration. If we utilise the production for creating biofuel, it will help farmers to get more money and change the rural economy. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
Time of India
34 minutes ago
- Time of India
Lok Sabha approves updated I-T bill, to ease compliance burden
Lok Sabha NEW DELHI: Lok Sabha on Monday approved the Income Tax Bill 2025 - a key reform aimed at revamping the decades old income tax law for individuals and companies, making it simple for taxpayers and easing the compliance burden. Earlier, FM Nirmala Sitharaman introduced the revised and updated version of the I-T bill in Parliament, incorporating recommendations of the Select committee of Parliament. On Aug 8, FM had withdrawn the earlier bill, which was introduced in the house on Feb 13. The Select committee of the Lok Sabha headed by BJP's Baijayant Panda had examined the I-T Bill 2025 and adopted the report on the draft legislation last month. The parliamentary panel had suggested 285 recommendations on the draft legislation, aimed at simplifying and modernising the country's tax laws. "Almost all of the recommendations of the Select Committee have been accepted by govt. In addition, suggestions have been received from stakeholders about changes that would convey the proposed legal meaning more accurately," according to the statement of Objects and Reasons of the Income Tax (No.2) Bill. " For TDS correction statements, the time period for filing statements has been reduced to two years from six years in the Income-tax Act, 1961. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like listen now on spotify samy Listen Now Undo I-T department sources said this is expected to reduce the grievances of deductees significantly. Flexibility has been provided in the new I-T bill for allowing refund claims in cases where the return is not filed on time, a move which is expected to come as a major relief for taxpayers. Tax experts said the reforms are expected to ease compliance for individuals, companies, MSMEs and promote a stable, predictable and transparent tax system, key for sustaining domestic consumption, attracting foreign investment and supporting growth. "The withdrawal of the earlier I-T bill and the introduction of a revised version demonstrates govt's responsiveness to stakeholder feedback and the Select Parliamentary committee's recommendations," said Gouri Puri, partner, Shardul Amarchand Mangaldas and Co. Puri said the original draft raised concerns about ambiguities, particularly regarding house property taxation, pension deductions, and the refund process for delayed filings. "The revised bill addresses these gaps to simplify interpretation, reduce disputes and promote fairness," said Puri. The new I-T Bill also aims to eliminate redundant and repetitive provisions for better navigation, reorganising sections logically to facilitate case of reference. It has opted for simplified language to make the law more accessible and has removed obsolete and redundant provisions for greater clarity. Mandatory investment and deposit of deemed accumulated income of 15% of regular income in specified modes has been done away with. The word "profession" has been added after "business" in clause 187 to enable professionals with total receipts exceeding Rs 50 crore in a year the facility of prescribed electronic modes of payment. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
