Vishal Mega Mart shares are now up 100% from their IPO price; Analysts see further upside

Brokerage firm Jefferies has increased its price target on hypermarket chain Vishal Mega Mart Ltd. to ₹175 from ₹142 earlier, on Thursday, August 14, after the company reported its June quarter results. The stock is up 6% in early trading on Thursday.At the intraday high of ₹155.6, the stock is nearly double of its IPO price at ₹78 per share. The stock listed in December 2024.

Jefferies has maintained its “buy” recommendation on the stock. The revised price target implies a potential upside of 21% from Wednesday’s closing levels.

This is the highest price target on the street on Vishal Mega Mart. The highest price target also implies a return of 124% from the stock’s IPO price of ₹78 per share. The stock has already risen 80% from those levels.
Vishal Mega Mart’s same-store-sales growth remained in double-digits for the fifth straight quarter, according to Jefferies, who added that the quick-commerce platform, though currently small, continues to scale up well. The outlook also remains positive.Morgan Stanley also remains “overweight” on Vishal Mega Mart with a price target of ₹161.

As per the management, growth during the quarter was driven by store expansion, high footfalls, and own brand strength, which was partly offset by key festival shifting from the first quarter to the fourth quarter.

12 analysts have coverage on Vishal Mega Mart, of which nine of them have a “buy” rating, two say “hold” and one has a “sell” recommendation.

Shares of Vishal Mega Mart are currently trading 3.7% higher, having cooled off from opening highs at ₹149.47.