Vishal Mega Mart Limited

Consumer Cyclical — Department Stores · NSE

₹96.00−₹0.25 (−0.26%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of Vishal Mega Mart Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Vishal Mega Mart Limited engages in the wholesale, trading, and retail of apparel, fast moving consumer goods, and general merchandise in India.

IndustryDepartment Stores

SectorConsumer Cyclical

Employees21,913

Annual revenue₹12,871 Cr

How does it make money?

Turns over ₹12,871 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 21,913 employees supports ₹58.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹58.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 14.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

15 analysts covering the stock expect revenue to grow about 18.0% and earnings to grow about 27.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.0%

Est. earnings growth+27.3%

Analysts15

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +70% while net margin moved +53% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+70%

Margin effect+53%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 50.8x is demanding — it needs sustained high growth to justify
✓ P/E is 49% below its own historical median of 99.9x — cheap by its own standards
✗ P/B of 6.04x is a steep premium to book

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

63/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

50.8x

2Y Median

99.9x

24 monthly readings · mean 94.4x · range 53.6x–136.2x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 49% below its 2y median of 99.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 27% below the peer median of 69.2x.

vs. its own history

Cheap

99.9x median over 24 months · -49%

vs. sector peers

Cheap

69.2x median of 4 peers · -27%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

24.4x

PEG

1.35

What's Good / What's Bad

🟢 What's Going Well5

Cash generation is improving
Free cash flow is up 214% over 3 years.
Return on equity is rising
ROE has improved from 6.2% to 11.3%.
Return on capital is rising
ROCE has improved from 9.6% to 14.6%.
Very low debt
Debt/Equity of 0.27x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 570% against revenue up 70% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 36% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 49% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 27% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1,296 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 570% against revenue up 70%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 19.4% CAGR
Latest reported year was 18.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1,296 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 14.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹44,974 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

50.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.04x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.89

Profitable

Profitable on a per-share basis

ROE

11.3%

Moderate

Moderate capital efficiency

ROCE

14.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.27x

Low

Conservative leverage

Revenue Growth (YoY)

18.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1,296 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

35.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.6%

Average

Average margins

Net Margin

6.6%

Average

Average bottom-line conversion

Current Ratio

1.60

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

100.2 / 103.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7,563 Cr	₹8,892 Cr	₹10,701 Cr	₹12,871 Cr	+19.4%
EBITDA	₹1,033 Cr	₹1,267 Cr	₹1,549 Cr	₹1,900 Cr	+22.5%
EBITDA Margin	13.7%	14.2%	14.5%	14.8%	—
PAT (Net Profit)	₹321 Cr	₹462 Cr	₹632 Cr	₹839 Cr	+37.7%
EPS	₹0.71	₹1.02	₹1.36	₹1.79	+35.9%
ROE	6.2%	8.2%	9.9%	11.3%	—
ROCE	9.6%	11.4%	13.0%	14.6%	—
Total Debt	₹1,462 Cr	₹1,483 Cr	₹1,729 Cr	₹1,988 Cr	+10.8%
Free Cash Flow	₹413 Cr	₹580 Cr	₹1,135 Cr	₹1,296 Cr	+46.4%

🟢 Revenue has grown at 19.4% a year over 3 years.

🟢 EBITDA has grown at 22.5% a year over 3 years.

🟢 EBITDA Margin has risen from 13.7% to 14.8% over 3 years (+1.1 pts).

🟢 PAT (Net Profit) has grown at 37.7% a year over 3 years.

🟢 EPS has grown at 35.9% a year over 3 years.

🟢 ROE has risen from 6.2% to 11.3% over 3 years (+5.1 pts).

🟢 ROCE has risen from 9.6% to 14.6% over 3 years (+5.0 pts).

🔴 Total Debt has grown at 10.8% a year over 3 years.

🟢 Free Cash Flow has grown at 46.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹11,449 Cr

Total Liabilities

₹4,036 Cr

Cash & Equivalents

₹526 Cr

Operating Cash Flow

₹1,621 Cr

Capex

-₹325 Cr

Shareholding (proxy)

Institutional Holding

48.1%

Insider Holding

40.0%

Analyst Consensus

Recommendations

18 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹145.37

+51.4% vs CMP

Target Range

₹100 – ₹170

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 mixed1 negative3 general

Vishal Mega Mart Share Price - Live NSE: VMM Stock Price & Chart

Upstox, 16 Oct

VISHAL MEGA MART LIMITED Share Price at Fresh 52-Week Low

Univest, 16 Oct

Vishal Mega Mart share price dips | Here’s what brokerages see, share price target

Livemint, 24 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Vishal Mega Mart Ltd Falls to 52-Week Low of Rs 95 as Sell-Off Deepens

MarketsMojo, 15 Oct

Vishal Mega Mart shares could rise another 50%, bullish analysts predict after investor day

CNBC TV18, 24 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Vishal Mega Mart Shares May Rally 27%, Says Motilal Oswal Despite Stake Sale Overhang — Check New Target Price

NDTV Profit, 24 SeptOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑