Analyst backs Vishal Mega Mart

Elara Capital has initiated coverage on Vishal Mega Mart with a “Buy” rating and a ₹130 target price, implying about 14% upside from ₹114. (economictimes.indiatimes.com) ET Now reported on April 15 that Elara’s note centers on Vishal Mega Mart’s value-retail model and assigns the stock a ₹130 target. The call came less than 16 months after the company listed on Indian exchanges on December 18, 2024. (etnownews.com) (aboutvishal.com) Vishal Mega Mart sells apparel, general merchandise and fast-moving consumer goods through a nationwide store network. In fiscal year 2025, apparel contributed 44% of revenue, while general merchandise and fast-moving consumer goods each contributed 28%. (aboutvishal.com) That mix gives the chain exposure to both discretionary spending, such as clothing, and repeat purchases, such as packaged staples and household goods. The company said its own brands contributed 73.1% of revenue in fiscal year 2025, up from 71.8% a year earlier. (aboutvishal.com) Store growth is a big part of the investment case. Vishal Mega Mart added 85 net new stores in fiscal year 2025, ending March 31, 2025 with 696 stores across 458 cities and about 12.2 million square feet of retail area. (aboutvishal.com) Brokerage reports have tied that expansion to smaller-city demand. A July 2025 Motilal Oswal initiation described Vishal Mega Mart as heavily exposed to tier-2 cities and beyond, with 696 stores in 458 cities and a 73% private-brand revenue share. (moneycontrol.com) The company’s latest full-year results showed why analysts are focusing on operating leverage. Fiscal year 2025 revenue rose 20.2% to ₹107.16 billion, reported earnings before interest, taxes, depreciation and amortization rose 22.6% to ₹15.30 billion, and profit after tax rose 36.8% to ₹6.32 billion. (aboutvishal.com) Same-store sales growth also stayed in double digits. Vishal Mega Mart reported 11.8% same-store sales growth for fiscal year 2025 and 13.4% in the March quarter, alongside 28 net new stores added in that quarter alone. (aboutvishal.com) Other analysts have been more bullish on valuation. Motilal Oswal initiated with a ₹165 target in July 2025, and NDTV Profit reported Jefferies lifted its target to ₹142 after the March-quarter results while keeping a “Buy” rating. (moneycontrol.com) (ndtvprofit.com) The immediate test for Elara’s call is whether Vishal Mega Mart can keep adding stores, hold margins and convert its private-label mix into faster profit growth than sales growth. Its fiscal 2025 numbers gave analysts enough evidence to keep backing that thesis. (aboutvishal.com)