Check Before You Invest : Vishal Mega Mart Ltd

Snapshot

Q.1 Which industry/sub-sector does Vishal Mega Mart Ltd belong to?

Vishal Mega Mart Ltd belongs to the Retail sector, operating specifically within the Retailing segment.

Q.2 Is Vishal Mega Mart Ltd a good quality company?

Vishal Mega Mart Ltd is a average quality company, based on a somewhat consistent 7-year financial track record.

Q.3 Is Vishal Mega Mart Ltd undervalued or overvalued?

Vishal Mega Mart Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Vishal Mega Mart Ltd a good buy now?

Vishal Mega Mart Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Vishal Mega Mart Ltd?

Vishal Mega Mart Ltd revenue growth is 20.3% for FY-2025, which is above its 5-year CAGR of 15.15%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Vishal Mega Mart Ltd?

Vishal Mega Mart Ltd Return on capital employed is 17.13% for FY-2025, which is above its 5-year historical median of 11.6%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.3 Return on Asset of Vishal Mega Mart Ltd?

Vishal Mega Mart Ltd Return on Asset is 6.84%, which is above its 5-year historical median of 3.92%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Vishal Mega Mart Ltd?

Vishal Mega Mart Ltd Return on equity is 10.62% for FY-2025, which is above its 5-year historical median of 6.5%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Vishal Mega Mart Ltd?

Vishal Mega Mart Ltd Cash conversion cycle is 8 days, above its 5-year historical median of -11 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.16	0.93
ROE	10.62	6.5
ROCE	17.13	11.6
Cash Conversion Cycle	8 days	-11 days

Q.6 Gross Profit margin of Vishal Mega Mart Ltd?

Vishal Mega Mart Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.4% for FY-2025, which is above its 5-year median of 12.1%, indicating increasing margins.

Q.7 Operating Profit Margin of Vishal Mega Mart Ltd?

Vishal Mega Mart Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.59% for FY-2025, which is in line with its 5-year median of 14.32% indicating stable margins.

Q.8 Net Profit Margin of Vishal Mega Mart Ltd?

Vishal Mega Mart Ltd Net Profit Margin is 5.9% for FY-2025, is above with its 5-year median of 4.24%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	13.4	12.1
Operating Profit Margin	14.59	14.32
Net Profit Margin	5.9	4.24

Q.9 Debt to Equity ratio of Vishal Mega Mart Ltd?

Vishal Mega Mart Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.1, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Vishal Mega Mart Ltd?

Vishal Mega Mart Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Vishal Mega Mart Ltd?

Promoters hold 40.12% of the Vishal Mega Mart Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Vishal Mega Mart Ltd vs industry peers?

Vishal Mega Mart Ltd revenue CAGR is 15.15%, compared to the industry median CAGR of 15.15%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	20.3	15.2
Gross Profit Growth	26.5	26.6
Operating Profit Growth	22.4	18.9
Net Profit Growth	36.8	69.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.16	0.93
ROE	10.62	6.5
ROCE	17.13	11.6
Cash Conversion Cycle (days)	8.2	-11

Valuation & price assessment

Q.1 Stock return of Vishal Mega Mart Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 0.12% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	0.1%

Q.3 Valuation ratios of Vishal Mega Mart Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	74.37	96.02	37.16
Price to Book	8.11	8.67	2.93
Price to Sales	4.74	5.34	1.30
EV to EBITDA	30.64	35.44	14.03

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