Vishal Mega Mart, which operates supermarket chains across 30 states and Union Territories in India, has shown strong momentum since its listing on December 18. The company debuted at Rs 110 on BSE, delivering an immediate 41% premium to IPO investors, while on NSE, the shares opened at Rs 104, representing a 33.3% premium.
The retail sector’s positive sentiment was fueled by strong business updates from key competitors. Avenue Supermarts, the parent of the D-Mart hypermarket chain, reported a standalone revenue of Rs 15,565 crore for the December quarter, a 17.5% year-on-year increase and 2% above market expectations. This growth, alongside an 11% sequential increase, drove Avenue Supermarts’ stock up 15% on Friday.
Similarly, V2 Retail, which operates 150 stores across 112 cities in 17 states, posted a 58% year-on-year revenue increase for the December quarter, with same-store sales growth (SSG) rising 25%. The company opened 45 new stores in the first nine months of FY2024-25, further boosting investor confidence in the sector. V2 Retail shares were locked in an upper circuit of 5% after the quarterly update.
Another sectoral peer, V-Mart Retail, recorded 16% revenue growth and a 10% rise in same-store sales growth during the December quarter. The collective strong performance of retail companies has created a ripple effect, lifting sentiment across the sector.
Vishal Mega Mart has witnessed notable volatility since its debut on Dalal Street but the stock remains on an upward trajectory. The positive performance of the overall retail sector and the company’s subsequent returns of 44% since its listing, positions it as a key player against established rivals like D-Mart and V2 Retail.Also read | ONGC shares rise 4% as Jefferies maintains buy rating, sees 47% upside
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