Vishal Mega Mart IPO: The Good and the Bad

Published: 11th Dec 2024

By: Value Research

The company

Vishal Mega Mart is a budget retailer that offers lifestyle products, including apparel, general merchandise and beauty and personal care (BPC). The retailer targets lower-to-middle income customers that prefer affordable pricing.

IPO details

Post-IPO

Financial history

EBIT is earnings before interest and taxes PAT is profit after tax TTM is 12 months ending September 2024

Key ratios

ROE is return on equity ROCE is return on capital employed

The good

The company is expected to ride sectoral tailwinds including growing demand for affordable lifestyle products, especially in tier-2 and 3 cities. The domestic retail market is estimated to grow 32 per cent per annum between 2023 and 2028 in tier-2 cities.

The good

The company touts a strong and expanding portfolio of its own brands. This segment makes up 73 per cent of its revenue. In FY24, 19 of its own brands generated sales exceeding Rs 100 crore each, with six brands surpassing Rs 500 crore each.

The bad

The industry’s competitive intensity and the company’s geographical concentration are key concerns. To read the risk factors in detail, head on to our story from the link below:

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