Vishal Mega Mart IPO Review

Vishal Mega Mart is a one-stop destination for middle and lower-middle income India. They curate a diverse range of merchandize through their portfolio of own brands and third party brands to fulfil the aspirational and daily needs of consumers with a clear focus on variety, affordability, quality and convenience. They offer products across three major product categories, i.e., apparel, general merchandise and fast-moving consumer goods, through a pan-India network of 626 Vishal Mega Mart stores (as of June 30,2024) and their Vishal Mega Mart mobile application and website.

The Company is led by strong and experienced Promoters, namely, SAMAYAT SERVICES LLP AND KEDAARA CAPITAL FUND II LLP.

The revenues from operations for Fiscals ended 2024, 2023 and 2022 were ₹89,451.27 Million, ₹76,188.93 Million and ₹56,538.51 Million respectively. The EBITDA for Fiscals ended 2024, 2023 and 2022 were ₹12,817.82 Million, ₹10,534.37 Million, and ₹8,690.21 Million, respectively. The profit after tax for Fiscals ended 2024, 2023 and 2022 were ₹4,619.35 Million, ₹3,212.73 Million, and ₹2,027.70 Million respectively.

For the Vishal Mega Mart IPO, the company is issuing shares at a pre-issue EPS of ₹1.01 and a post-issue EPS of ₹1.02. The pre-issue P/E ratio is 77.23x, while the post-issue P/E ratio is 76.13x against the Industry P/E ratio is 131x. The company's ROCE for FY24 is 68.76% and RoE for FY24 is 8.18%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Vishal Mega Mart showing potential listing gains of 20.84%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Vishal Mega Mart Limited IPO for Listing gain.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
 CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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