VMM - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.7

📊 Core Financials Breakdown

Profitability

ROCE: 10.1% and ROE: 7.62% — modest, suggesting average capital efficiency.

EPS: ₹1.13, with PAT rising from ₹107 Cr. to ₹177 Cr. — a strong 35.2% quarterly growth, though absolute earnings remain low relative to market cap.

Debt-to-equity: 0.02 — virtually debt-free, a major strength for financial resilience.

Dividend Yield: 0.00% — no dividend payout, indicating reinvestment focus.

Institutional Sentiment

FII holdings surged (+5.82%), DII holdings jumped (+15.1%) — strong institutional confidence.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 132 Extremely high vs. industry average (76.6) — priced for aggressive growth.

P/B Ratio ~10.8 Elevated — reflects premium valuation and brand strength.

PEG Ratio 4.07 High — valuation stretched relative to earnings growth.

Intrinsic Value ~₹130–₹140 (est.) Current price of ₹146 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Vishal Mega Mart (VMM) operates as a value retail chain offering apparel, FMCG, and general merchandise through contract manufacturing and wholesale trading

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Strengths

Strong brand positioning in Tier 2 and Tier 3 cities.

Asset-light model with scalable operations.

High institutional interest and strong quarterly earnings momentum.

Challenges

Elevated valuation multiples and low EPS.

RSI at 46.2 — neutral, MACD at 1.44 — mild bullish momentum.

📈 Entry Zone & Technicals

DMA 50: ₹144, DMA 200: ₹127 — price is above both, indicating short-term strength.

RSI: 46.2 — neutral zone.

MACD: 1.44 — bullish crossover.

📌 Entry Zone: ₹135–₹142 — ideal for accumulation on dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹155.65 (average analyst estimate)

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2026–2028 Target: ₹170–₹200

2030 Target: ₹250+

Holding Strategy: VMM is a high-growth retail play with strong brand equity, low debt, and expanding footprint. Suitable for long-term investors seeking exposure to India’s value retail boom. Accumulate during technical weakness and hold through cycles.

You can explore VMM’s live share dashboard

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or review its intrinsic valuation and analyst forecasts

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for deeper insights.

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trendlyne.com

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www.alphaspread.com

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