Vishal Mega Mart shares drop nearly thirty percent in six months as brokerages project strong upside

Shares of Vishal Mega Mart stayed under pressure during Thursday's trading session, trading 2.28% lower at ₹87.85 per share on the BSE at 2:45 pm with a market capitalisation of ₹41,156.04 crore. The diversified retail stock has dropped nearly 30% over the last six months, falling 29.56% in that period, alongside a 35.40% decline in 2026 so far and about 40.76% over the past year.

Financial Results

Vishal Mega Mart reported a 3.65% increase in consolidated net profit to ₹157.88 crore for the September quarter of FY27, compared to ₹152.31 crore in the same period a year ago. Revenue from operations grew 14.5% to ₹3,436.92 crore during the quarter, up from ₹3,001.67 crore in the corresponding period last year.

Brokerage Outlook

Despite the share price decline, Motilal Oswal Financial Services Limited maintained a Buy rating on the stock with a revised target price of ₹125 per share, indicating a 39% upside potential. The brokerage reduced its target price from an earlier ₹135 after Q2FY27 results, but remains bullish due to the company's diversified category mix, business model, consistent performance, opening-price-point products, own brands, and lean cost structure. However, Motilal Oswal noted that concerns over potential promoter stake sales and long-term promoter ownership remain key overhangs.

Context

Retail stock prices often fluctuate based on quarterly earnings growth and broader market sentiment regarding promoter holdings. Brokerage firms use financial metrics like DCF-implied valuations to project long-term target prices despite short-term market pressures.