Vishal Mega Mart (VMM)

FairStock Score: 53/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I apply Buffett-Graham discipline to Vishal Mega Mart. At ₹105.20, market cap is ₹49,279 Cr. Revenue has grown 15.15% CAGR over five years and sales growth is 13.92%, with latest quarter sales ₹3,670 Cr. That shows a retailer still expanding. But profit growth is -1.94%, and latest quarterly net profit is ₹313 Cr; sales are not converting into profit growth. Balance sheet is a bright spot: debt/equity 0.27, FCF ₹789 Cr, Altman Z 5.77, Piotroski 8/9. Promoter holding 54.09% aligns interests. Returns, however, are only ROE 12.29% and ROCE 13.10%, not exceptional for a quality compounder. I see no clear moat in these figures. Valuation is the deal-breaker. P/E is 55.37, P/B 6.62, EV/EBITDA 73.15. Graham Number is ₹23.16 versus ₹105.20, a margin of safety of -408.59%. DCF intrinsic value ₹59.78 also suggests the market price is far above intrinsic worth. PEG 0.92 looks reasonable only if growth returns, yet profit is declining. No dividend yield. FairStock 53/100 mixed. At ₹105.20, the stock trades near its 52-week low of ₹96.10 but still far above Graham and DCF values. The 52-week high was ₹149.82, so price has corrected, yet valuation remains rich. If ROE and ROCE stay near 12-13%, paying over 6x book is hard to justify. The Piotroski F-Score of 8/9 and Altman Z-Score of 5.77 suggest accounting and balance-sheet safety, but safety is not the same as cheapness. I would wait for either a much lower price or visible profit acceleration. This may be a Stalwart retailer with decent scale and balance sheet, but not at this valuation.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer