JM Financial has initiated coverage of Vishal Mega Mart (VMM) with a ‘Buy’ recommendation and a 12‑month price target of Rs 175. This implies nearly 22%upside for the Vishal Mega Mart share price from current levels. The note frames the company as a high-return, asset‑light, offline‑first retailer positioned to capitalise on the rapid formalisation of retail in India.
The brokerage firm looked at seven principal drivers:
Store economics
Private‑label strategy
Supply‑chain advantage
Expansion runway
Financial trajectory
Valuation
Risks
Here is a detailed anlsyis of the factors driving JM Financial’s bullish call –
1.JM Financial on Vishal Mega Mart: Secular tailwinds
JM Financial emphasises the sheer scale of India’s retail market and the faster growth of organised retail, espe