Buy Vishal Mega Mart: target of Rs 150: ICICI Securities

Moneycontrol • 10 days ago

Original source

Key Investment Pillars

  • Private label mix: VMM's private labels account for 72.5% of sales, supporting differentiation and pricing control.
  • Loyalty strength: Customer engagement remains strong, with loyalty members contributing ~95% of gross revenue.
  • Omni-channel scale: VMM continues to expand its omni-channel presence, with its quick-commerce delivery platform reaching 781 stores across 532 cities.
  • Tier-2/3 market expansion: Management's estimated potential for >3,000 large-format stores, internally funded expansion, and supply-chain investments drive growth.

Thesis Validation Checklist

To validate the thesis, watch for: sustained same-store sales growth (SSSG), improvement in gross margin, and successful expansion in tier-2/3 markets. Key signals include a healthy SSSG, adjusted for festive calendar shifts, and a growing store count with increasing presence in southern India.