Vishal Mega Mart Shares May Rally 34%, Says ICICI Securities — Check Stock Rating, Target Price

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ICICI Securities Report

ICICI Securities has maintained its 'Buy' rating on Vishal Mega Mart Ltd., assigning a target price of Rs 175, indicating a 34% upside from the current market price of Rs 131.

The brokerage highlights robust expansion plans, premiumisation trends, and strong execution as key drivers of growth.

Expansion momentum strengthens medium-term visibility

Vishal Mega Mart continues to build a dense, repeatable expansion model across tier II/III markets. Kerala has emerged as a strong next-leg opportunity, with management identifying a ~100-store potential, a meaningful opportunity given UP currently has ~125 stores.

Early traction has been encouraging, supported by compact formats and strong value perception.

Tamil Nadu will be approached in a calibrated manner to protect early unit economics and ensure consistency across the model as the footprint expands.

Strong value-led positioning vs peers

In Kerala, customers were historically accustomed to cooperative formats offering ~2- 5% savings; Vishal Mega Mart’s sharply priced FMCG and general merchandise products provide a materially stronger value proposition.

In markets with DMart overlap, Vishal Mega Mart plays a distinct role in consumer basket, led by fast fashion sharply priced private labels, while DMart remains dominant in full-basket FMCG. This differentiated positioning limits direct head-to-head competition and supports Vishal Mega Mart’s margin resilience.

Key risks:

Slower-than-expected store addition and same-store sales growth, exit of key managerial personnel and customer shifting towards convenience (quick commerce).

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