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

Strengths

• Five-year revenue CAGR of 19.21% and latest quarter sales of ₹3,670 Cr show consistent expansion.
• Profit growth of 36.04% with net profit of ₹313 Cr indicates strong operating leverage.
• Debt/Equity of 0.27 and Altman Z-Score of 5.77 point to a healthy balance sheet.
• Piotroski F-Score of 8/9 and free cash flow of ₹789 Cr reflect sound financial discipline.
• Promoter holding of 54.09% aligns owner interest.

Concerns

• P/E of 69.99, P/B of 9.21, and EV/EBITDA of 73.15 price in perfection with little margin of safety.
• Price is far above Graham Number of ₹23.16 and DCF intrinsic value of ₹59.78.
• No dividend yield, so shareholders depend entirely on future growth and multiple expansion.
• ROE of 12.29% and ROCE of 13.10% are decent but not exceptional enough to justify the premium valuation.

AI Analysis

At first glance, Vishal Mega Mart is the kind of retail business I can understand. The numbers show a growing enterprise: five-year revenue CAGR of 19.21%, latest quarter sales of ₹3,670 Cr, net profit of ₹313 Cr, and profit growth of 36.04%. Debt/Equity of 0.27 and an Altman Z-Score of 5.77 tell me the balance sheet is sound. Piotroski F-Score of 8/9 reflects clean financials, and ₹789 Cr of free cash flow gives it room to fund expansion without loading up on debt. That is encouraging. But understanding the business is only half the filter. The other half is price. At ₹126.16, the market capitalizes this at ₹55,039 Cr. That is 69.99 times earnings, 9.21 times book value, and a stunning 73.15 times EV/EBITDA. The Graham Number is ₹23.16 and the DCF value is ₹59.78. Buying here leaves a margin of safety of -408.59%. Even if Vishal Mega Mart is a quality operator, the price already assumes years of flawless execution. ROE of 12.29% and ROCE of 13.10% are respectable, but not the sky-high returns that justify such a premium. No dividend also means the investor's only return is growth and multiple expansion. I would call it a fast grower with a steady score. The operations are genuinely good. But as Graham said, price is what you pay, value is what you get. Paying this price makes the arithmetic work against you. I would put this on a watch list and wait for the market to offer a fairer entry. For current holders, the business is fine; for a new buyer, discipline says wait.

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