Latest news with #VishalMegaMart
Time of India
2 hours ago
- Business
- Time of India
Top stocks to buy: Stock recommendations for the week starting July 21, 2025
Top stocks to buy (AI image) Stock market recommendations: According to Motilal Oswal Financial Services Ltd, the top stock picks for the week (starting July 21, 2025) are Vishal Mega Mart, and State Bank of India (SBI). Let's take a look: Stock Name CMP (Rs) Target (Rs) Upside (%) Vishal Mega Mart 138 165 20% State Bank of India 823 925 12% Vishal Mega Mart VMM is one of India's largest offline-first value retailers, operating 696 stores across 458 cities, with ~72% in Tier 2+ India. VMM aims to add 100+ stores per year across 1,250+ Tier 2+ towns & untapped Tier 1 cities, supported by robust store-level economics. VMM's mix—Apparel (44%), FMCG & GM (~28% each)—with 73% revenue from private brands, drives footfall, wallet share, and TAM expansion. With <2-year payback, >50% RoCE, & double-digit SSSG, VMM enjoys strong store-level profitability & self-funded expansion through disciplined, asset-light operations. We expect revenue/EBITDA/PAT CAGR of 19%/20%/24% over FY25–28, driven by steady store additions and margin gains. Forecast cumulative OCF/FCF of ₹32b/₹23b ensures ample internal funding, while private label scale & operating leverage further enhance profitability. State Bank of India SBI launched a ₹25,000-crore QIP on July 16, its first equity raise in eight years and the largest by any Indian entity. The Indicative QIP price range is ₹806.75–₹831.70 per share, implying up to a 3% discount to July 16 NSE close. The fundraise aims to support the bank's growth plans and strengthen its capital adequacy ratio, which stood at 14.25% as of March 25. With a robust ₹3.4t credit pipeline and a conservative CD ratio of 69%, it is well placed to deliver 12-13% credit growth over FY26-27E, ahead of systemic trends. SBIN remains well-positioned for sustainable growth, underpinned by strong credit expansion and controlled asset quality risks. We estimate 5% earnings CAGR over FY25-27E, with RoA/RoE expected at 1.0%/15.6% by FY27E. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
4 days ago
- The Hindu
Karol Bagh fire: HC seeks govt., MCD responses
The Delhi High Court on Wednesday sought responses from the government and the Municipal Corporation of Delhi (MCD) on a plea demanding a court-monitored investigation into the July 4 fire in Karol Bagh that claimed two lives. The court also issued notices to the Delhi Fire Services and Delhi Development Authority (DDA) on the petition, which was filed by the NGO 'Kutumb'. Two men were killed after a fire broke out at Vishal Mega Mart in central Delhi's Karol Bagh area. The court has directed the authorities to file their responses within four weeks. The matter will be heard next on September 24. The plea, filed through advocate Rudra Vikram Singh, alleges negligence on the part of Vishal Mega Mart's management, Delhi Police, the fire department, and the MCD, which it claims led to the incident. It flagged serious lapses in the enforcement of fire safety norms and questions how licences and No Objection Certificates (NOCs) were granted to commercial establishments operating in densely populated areas without meeting mandatory safety standards. The petition also seeks an investigation into the role of the MCD, fire services, and police officials for failing to ensure compliance with fire safety protocols. It also calls for an assessment of whether Vishal Mega Mart and nearby commercial establishments possessed valid NOCs and to identify those operating illegally. The plea seeks immediate closure of unlicensed shopping centres, restaurants, coaching institutes, and other such entities in Karol Bagh and surrounding areas until a status report is submitted.
Time of India
5 days ago
- Business
- Time of India
Vishal Mega Mart shares may rally 20%, says Motilal Oswal. What's driving the bullish call?
Motilal Oswal has initiated coverage on Vishal Mega Mart with a 'buy' rating and a target price of Rs 165, implying a potential 20% upside from Tuesday's closing price of Rs 137. The brokerage sees the value retailer as a 'play on rising aspirations in Tier 2+ India,' underpinned by its affordable private-label portfolio, lean cost structure, and a growing footprint across underserved cities. Shares of Vishal Mega Mart rose as much as 2.2% on Wednesday to Rs 140 on the BSE. Vishal Mega Mart ( VMM ) operates 696 stores across 458 cities in India, with roughly 72% of its footprint located in Tier 2 and smaller towns. Motilal Oswal said the company is tapping into a largely unorganised Rs 70 trillion retail opportunity, which it expects will exceed Rs 100 trillion by 2028. 'VMM is one of India's largest offline-first value retailers, catering to ~1 billion people across the middle- and low-income segments,' the brokerage said, adding that the company's well-diversified exposure to apparel (44%), general merchandise and FMCG (28% each), gives it significant wallet share potential. Lean model, strong store economics According to Motilal Oswal, Vishal Mega Mart operates on one of the lowest cost structures in the industry, with a cost of retailing of about Rs 1,800 per sq ft, at least 20% lower than its nearest competitor. Its working capital discipline and asset-light approach have helped generate ~15% store-level EBITDA margins and over 50% return on capital employed. The company added around 85 net stores in FY25, and Motilal Oswal estimates about 13% compound annual growth rate in store additions, taking the count to 1,000 by FY28. Management has indicated a long-term target of adding 100 stores annually, including in states such as Tamil Nadu, Gujarat, and Maharashtra. Private labels driving profitability VMM's private labels contributed 73% of total revenue in FY25, supported by 26 in-house brands across fashion, general merchandise and FMCG. Nineteen of these brands recorded over Rs 1 billion in sales, with six crossing Rs 5 billion. The brokerage highlighted that the company's private-label FMCG products, sourced from vendors such as Indo Nissin and Bikanerwala, are priced 20–50% lower than national brands, helping attract price-sensitive consumers. 'VMM operates a 100% private label portfolio across men's, women's and kids' fashion,' Motilal Oswal said. Valuation and risks Motilal Oswal's target price of Rs 165 is based on its long-term cash flow projections, valuing the stock at around 45 times its estimated EBITDA and 69 times its projected earnings for September 2027. Despite the stock having already gained 75% since its IPO, the brokerage believes 'the risk reward remains attractive,' with potential to go as high as Rs 210 in a bullish scenario and a downside to Rs 120 in a weaker one. The brokerage expects the company to generate Rs 32 billion in operating cash flow and Rs 23 billion in free cash flow over FY25–28, supporting continued expansion. Key risks flagged include dependence on third-party vendors for manufacturing its private labels, rising competition from online and offline retailers, and the potential for promoter stake sales amid a lack of clarity on long-term ownership. Also read | Breakout Stocks: How to trade Anand Rathi Wealth, Piramal Enterprises & Vishal Mega Mart that hit a 52-week high? ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Business Standard
5 days ago
- Business
- Business Standard
Vishal Mega Mart rises 2%; Motilal Oswal sees further 20% upside potential
Vishal Mega Mart shares rose 2 per cent on Wednesday, registering an intraday high at ₹140 per share on BSE. However, in the afternoon deal, at 12:40 PM, Vishal Mega Mart share price was trading 0.04 per cent higher at ₹1,37.1 per share on the BSE. In comparison, the BSE Sensex was up 0.05 per cent at 82,614.39. The company's market capitalisation stood at ₹63,907.39 crore. The 52-week high of the stock was at ₹140.45 per share and the 52-week low of the stock was at ₹96.05 per share. Motilal Oswal initiates coverage on Vishal Mega Mart The domestic brokerage has initiated coverage on Vishal Mega Mart with a 'Buy' call and has set the target at ₹165 per share, translating to an upside of 20 per cent from the previous close at ₹137.05 per share on BSE. The brokearge is bullish on the company for the following reasons: Vishal Mega Mart's retail footprint spans 696 stores over 12m sq ft across 458 cities. It operates a big-box retail format, with an average store size of ~17.5k sqft. During FY22-24, the company added 55 net stores annually. However, the pace of store additions has accelerated, with 85 net stores added in FY25. Further, the company's efficient working capital management, superior cost controls, and disciplined asset-light approach, according to Motilal Oswal, have enabled strong store economics with 15 per cent pre-IND-AS Earnings before interest, tax, depreciation and amortisation (Ebitda) margin at the store level, over 50 per cent return on capital employed (RoCE), and a payback period of fewer than two years. Well-diversified portfolio The company boasts a well-diversified category mix with over 25 per cent revenue contribution from three major categories—Apparel, FMCG, and General Merchandise (GM). Its diversified category mix makes it a one-stop destination for the entire family, expanding its total addressable market (TAM) and driving higher wallet share among consumers. Caters to ₹70 trillion worth opportunity Vishal Mega Mart is one of India's largest offline-first value retailers, catering to a population of 1 billion across the middle- and low-income segments. It serves a substantial market valued at ₹70 trillion, which is likely to reach ₹100 trillion by CY28. Outlook Motilal Oswal expects the company to post a revenue/Ebitda compound annual growth rate (CAGR) of 19 percent/20 per cent, driven by 13 per cent CAGR in store additions, consistent double-digit SSSG, and modest operating leverage benefits. Given the company's debt-free balance sheet, robust cost controls, and tight working capital management, it expects 24 per cent profit after tax (PAT) CAGR. Over FY25-28, Vishal Mega Mart is forecasted to generate a cumulative OCF/FCF of ₹3,200 crore/ ₹2,300 crore, which should enable accelerated store expansions.
Hans India
6 days ago
- Business
- Hans India
Mutual Funds Favour Asian Paints, Vishal Mega Mart in June; ICICI Bank, Infosys Trimmed.
Markets news: The latest data from mutual funds shows a selective approach to the equity markets, and the buying and selling focusing on only a few stocks. Of the more than 4,000 companies that are listed on the BSE mutual funds had positions in about 1,200 stocks in June. However, large investments were concentrated on a handful of. Only 16 stocks experienced mutual fund inflows of between Rs 1,000-10,000 crores during the month. Meanwhile, 21 stocks witnessed inflows in the amount from Rs 500 crore to $1,000 crore. The remaining stock markets drew smaller investments between 1 crore to the amount of Rs 500 crore. On the flip part, nine companies reported the exodus of mutual funds that exceeded $1,000 crore. Another 16 stocks experienced trading between Rs 500 crore to Rs 1,000 crore, and the remainder--more than 400 stocks--experienced exits from mutual funds that ranged from one crore and 500 crore. One of the most significant acquisitions, Asian Paints stood out as mutual funds invested more than Rs 10,000 crore in an agreement that saw Reliance Industries divested its stake. In a similar way, Vishal Mega Mart attracted more than $785 crore in mutual fund investments, after its promoter disposed of shares through an agreement in block. Other notable purchases include Bajaj Finserv, Dixon Technologies, NTPC, Biocon, State Bank of India, Trent, Kaynes Technology, and Siemens Energy India, each receiving an inflow of between Rs 2,000 and the equivalent of Rs 4,750 crore. On the selling side, ICICI Bank topped the list of mutual fund outflows of $1653 crore. then Infosys as well as Reliance Industries, which saw sales of 1500 crore and 1,492 crore each. Tata Motors, Coal India, IndusInd Bank, and Bharti Airtel also witnessed mutual fund sales of more than 1,000 crore for each.
