Shares of Vishal Mega Mart soared 9.93% within a few minutes of the opening bell as traders saw Morgan Stanley's commentary on management succession as a positive.
The stock reached a high of Rs 113.70, but pared gains to trade nearly 7% higher at Rs 110.63 on the NSE as of 9:24 a.m. This compared to a 0.21% advance in the Nifty index.
MS On Vishal Mega Mart
Morgan Stanley has maintained an 'overweight' rating with target price of Rs 146. The brokerage cited that re-appointment of MD & CEO for 5 years is a positive as uncertainty around management succession has been a key overhang.
The retailer re-appointed Gunender Kapur as Founder, MD, CEO for 5 years, effective Sept 1 on Friday. MS believes that the decision would help allay market concerns to some extent.
The stock has been weak, down 14% in the past three months and trades relatively cheap compared to discretionary peers, despite its consistent execution.
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