'Buy' Vishal Mega Mart, Maintains ICICI Securities, Sees Up To 32% Upside  — Here's Why

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ICICI Securities Report

Vishal Mega Mart Ltd.’s private label strategy in FMCG (~27% of revenue) has been important for its success story, redefining value for consumers. Our primary research outcomes:

1. High presence of large-pack stock keeping units and

2. reputed manufacturers for its private label brands.

Both these features imply its focus on consumers seeking true value in FMCG by purchasing large packs private label brands without compromising on quality.

Importantly, this allows Vishal Mega Mart to acquire new consumers for its other more profitable categories (apparel and general merchandise). With its value pricing strategy, led by focus on private labels (~73% salience), lean cost structures, efficient supply chain and loyal customer base, Vishal Mega Mart is well placed for sustained profitable growth. Buy.

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