Lost 30% in 6 months! Motilal Oswal sees 39% upside in Vishal Mega Mart stock - Check target price

Shares of Vishal Mega Mart remained under pressure during Thursday’s trading session. The diversified retail stock has declined nearly 30% over the last six months. Despite the decline, the value retail chain stock is poised for up to 39% upside, according to Motilal Oswal Financial Services Limited (MOFSL).

While the brokerage reduced its target price for the stock after Q2FY27 results announcement, it continued to remain bullish on the stock because of its diversified category mix and business model.

The brokerage remained bullish on Vishal Mega Mart stock due to its consistent performance, ownership of opening-price-point products, significant contribution from its own brands, and lean cost structure.

However, MOFSL highlighted that concerns over potential promoter stake sales and LT promoter ownership remain key overhangs for the stock. “We model a CAGR of 18%/24%/26% in revenue/pre-IND AS EBITDA/PAT over FY26-29E, driven by ~10% CAGR in area, double-digit SSSG and ~45bp annual pre-IND AS EBITDA margin expansion,” read the MOFSL report.

The brokerage maintained a ‘Buy’ rating on the stock with a target price of ₹125 per share, indicating a 39% upside potential.

“We reiterate our BUY rating on the stock with a revised TP of INR125 (earlier INR135), premised on a DCF-implied valuation of ~24x Dec’28E pre-IND AS 116 EV/EBITDA (implying ~38x Dec’28E EPS),” read the brokerage report.

The stock was trading 2.28% lower at ₹87.85 per share on BSE with a market capitalisation of ₹41,156.04 crore at 2:45 PM on BSE on Thursday. Its share price value has 29.56% in six months, 35.40% in 2026 so far and around 40.76% in one year.

Vishal Mega Mart on Wednesday reported a 3.65% increase in consolidated net profit to ₹157.88 crore during the September quarter. The company had posted a net profit of ₹152.31 crore in the July-September period a year ago, according to a regulatory filing by Vishal Mega Mart.

Its revenue from operations increased 14.5 % to ₹3,436.92 crore in the September quarter of FY27. It was ₹3,001.67 crore in the corresponding period a year ago.

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