Vishal Mega Mart’s share price saw a notable uptick recently, rising by 2.6% to ₹808 per share on June 19, 2025. This surge followed HDFC Mutual Fund’s acquisition of over 15 crore shares, increasing its stake in the company from 2.71% to 5.94%. The purchase was made through various schemes, including HDFC Business Cycle Fund, HDFC Value Fund, and HDFC Large and Mid Cap Fund.
This investment has provided a boost to the company’s stock price and is expected to spark more interest among retail investors.
Furthermore, the supermarket chain’s share price saw an uptick to ₹808 during the intraday trading session, showing that the positive investor sentiment could continue to drive up stock prices.
The recent sale: samayat services divests 20% stake
On the same day, Samayat Services LLP, the promoter entity of Vishal Mega Mart, sold a massive 19.6% stake in the company for ₹10,220.40 crore. The shares were sold at ₹113.51 to ₹113.61 each in two bulk transactions, reducing Samayat’s stake from 74.55% to 54.97%.
These bulk deals have allowed some of India’s largest mutual funds, including SBI Mutual Fund and Kotak Mahindra Mutual Fund, to pick up shares. SBI Mutual Fund acquired over 16.5 crore shares worth ₹1,882 crore, while Kotak Mahindra Mutual Fund picked up nearly 8 crore shares worth ₹902 crore. This brings the total mutual fund acquisition to ₹3,635 crore, providing the retail company with substantial institutional backing.
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How the numbers reflect on Visual Mega Mart’s growth
Over the years, Vishal Mega Mart has steadily increased its presence in India’s retail market. In FY25, the company reported a 24% increase in revenue, fueled by a 16% rise in retail space and a robust double-digit growth in same-store sales. The brand continues to expand its footprint, now operating 696 stores across 458 cities.
The company’s growth in profitability is equally impressive. The gross profit margin improved to 28.3% from 26.4%, and its EBITDA margin rose to 14% from 12.1%. The retailer’s strong earnings are largely attributed to the increased contribution from private-label brands, which are gaining popularity among consumers.
Here’s a quick snapshot of the key financials:
| Metric | FY25 | FY24 |
| Revenue | ₹2,547.9 crore | ₹2,068.9 crore |
| Gross Profit | ₹720.1 crore | ₹547 crore |
| EBITDA | ₹357.1 crore | ₹250.5 crore |
| Profit After Tax (PAT) | ₹115.1 crore | ₹61.2 crore |
| Gross Profit Margin | 28.3% | 26.4% |
| EBITDA Margin | 14% | 12.1% |
The company’s commitment to expanding its product mix and operational efficiencies has paid off, and with a larger private-label portfolio, it is set to maintain this upward trajectory.
Should you buy the stock?
The stock, currently trading around ₹128.1, is still 64% higher than its IPO price of ₹78. However, its price is down about 4.95% from its 52-week high of ₹134.50, reflecting a slight pullback. Despite this, the stock has gained 27.71% in the past three months, making it a strong contender for investors looking for growth in the retail sector.
According to analysts, Vishal Mega Mart’s stock is a strong buy, with a consensus target price of ₹130.14. While the stock’s short-term momentum score indicates a slight dip, its long-term durability and growth prospects make it a solid choice for investors looking to tap into India’s growing retail market.
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Why the market is interested in Vishal Mega Mart
Vishal Mega Mart’s increasing stake among large mutual funds, like HDFC and Kotak Mahindra, signals investor confidence in the retail chain’s future. Furthermore, the recent sale of shares by the promoter entity may have paved the way for the stock’s inclusion in global indices, particularly the MSCI indices, which could potentially bring in foreign investments.
Market observers are also looking at the company’s solid growth and improved margins, both of which make it a contender for inclusion in prestigious indices, further raising its profile among institutional investors.
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The outlook: what to expect
Vishal Mega Mart continues to show strong earnings and market interest. With the backing of major mutual funds and solid operational growth, the stock is expected to rise further, especially if it is included in the MSCI indices this August. As a potential MSCI inclusion candidate, Vishal Mega Mart could see substantial inflows in the coming months, making it an attractive option for both short-term and long-term investors.
