Jefferies has initiated coverage on Vishal Mega Mart with a ‘Buy’ rating and a target price of ₹125 per share, citing the company’s robust value retail proposition and strong growth prospects in India’s underpenetrated Tier-2 and Tier-3 markets.
The brokerage views Vishal Mega Mart as a compelling retail play that has built a complete shopping destination format, with a strong skew toward apparel and significant reliance on its own label offerings. The format has proven successful in delivering superior store economics, with a typical new outlet reaching payback within just two years.
Jefferies forecasts a healthy 27% compound annual earnings growth (CAGR) between FY24 and FY27, driven by continued store expansion, rising brand preference, and a deepening presence across semi-urban and rural markets. The company’s balance sheet remains net cash positive, with best-in-class return ratios that add to its attractiveness as an investment.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
