Vishal Mega Mart Shares Double from IPO Price; Analysts Predict More Gains Ahead

Vishal Mega Mart Ltd. has delivered remarkable gains to its investors, with the stock nearly doubling from its IPO price within just a few months of listing. The momentum has been supported by strong quarterly earnings, positive analyst sentiment, and sustained sales growth.

Analyst Coverage and Ratings

The stock currently has coverage from 12 analysts, reflecting growing institutional interest in the hypermarket chain.

• 9 analysts have issued a "Buy" rating.

• 2 analysts recommend "Hold".

• 1 analyst has a "Sell" rating.

This shows a strong overall bullish sentiment toward Vishal Mega Mart’s long-term growth prospects.

Jefferies Ups Price Target to ₹175

Global brokerage firm Jefferies has raised its price target on Vishal Mega Mart from ₹142 to ₹175 following the company’s June quarter results. The revised target suggests a potential upside of 21% from Wednesday’s closing price.

• The ₹175 target is the highest price target among all analysts covering the stock.

• Compared to its IPO price of ₹78 (listed in December 2024), Jefferies’ target represents a 124% potential return.

• At Thursday’s intraday high of ₹155.6, the stock was already trading at nearly double its IPO value.

Jefferies has maintained its “Buy” rating, citing sustained growth momentum and improving operational metrics.

Morgan Stanley Also Positive

Morgan Stanley continues to hold an "Overweight" stance on Vishal Mega Mart with a price target of ₹161. This reflects their belief that the stock can still deliver meaningful gains from current levels.

Strong Same-Store Sales Growth

According to Jefferies, Vishal Mega Mart’s same-store-sales growth (SSSG) has stayed in double digits for five consecutive quarters. This consistency highlights the company’s ability to attract repeat customers and drive higher store productivity.

The brokerage also noted that the company’s quick-commerce platform, while still relatively small, is scaling up steadily. This emerging channel could provide an additional growth lever in the coming quarters.

Management’s Commentary on Growth Drivers

Vishal Mega Mart’s management attributes the company’s growth during the quarter to:

• Store network expansion

• Increased footfalls at outlets

• Strong performance of own-brand products

However, they noted that some sales momentum was impacted by the shift of key festivals from the first quarter to the fourth quarter, which temporarily affected quarterly comparisons.

Market Reaction and Current Trading Levels

On Thursday, August 14, Vishal Mega Mart shares rose as much as 6% in early trade, hitting an intraday high of ₹155.6. By midday, the stock had cooled to around ₹149.47, still up 3.7% from the previous session’s close.

The rally has been part of a broader uptrend since the company’s December 2024 IPO, during which the stock price has surged over 80% from listing levels and nearly 100% from its IPO price.

Outlook: Further Upside Expected

With strong analyst support, continued store expansion, robust sales growth, and emerging digital initiatives, Vishal Mega Mart appears well-positioned for continued momentum.

The combination of bullish broker targets — including Jefferies’ ₹175 and Morgan Stanley’s ₹161 — signals that the market may still see further upside potential for the stock in the near to medium term.